May 25, 2013

S&P 500 Weekend update

  • S&P 500 Weekly chart shows negative divergence. Price is showing weakness in weekly time frame but no sell signal yet.
  • Daily MACD shows a sell signal but has support at 20 week SMA and price support at 1636. These two levels has to break for a bigger fall to follow.
  • One hour chart is trading below the cloud. Bulls may gain strength on moving back above the cloud.

APPLE in a Diamond pattern

  • Diamond patterns can go both ways. In this case since the pattern has come after a big down move bulls can expect a Diamond bottom.
  • If the overhead resistance levels of 100 Day SMA and 20 Week SMA acts strong then this will be a continuation pattern which will help bears to extend the major trend of the stock.
  • We may see a decisive breakout/breakdown in the coming week. Weakness below 434 levels and Strength above 453 level.

SPY Support and Resistance levels

  • SPY 30 Minutes chart shows a range between 163.95 - 165.90. Usually a range after a sharp down move is considered a bearish consolidation. So a breakdown below 163.95 is likely to happen.
  • If price moves above 165.90 the cloud and 100 period SMA Shown here may act as resistance.