http://stockmarketchartanalyst.blogspot.com/
The S&P 500 closed up 1.45% last week...
IMO, it has moved up "too far, too fast" since the bottom set in early September, and Volume diminished every day two weeks ago while the market rallied...It also diminished every day this week except for Friday...There was only one minor pullback on the 7th of September that set the only level of support for it to fall back to...Going up too far, too fast creates a situation where it can fall just as fast (if not faster) than it went up...Just like it has a few times in the recent past...
Of course, that all depends on what kind of bogus economic reports the government puts out again next week...This has been called the "teflon rally" by some, because the market went up a number of times even though there were negative economic reports released...It appears that the market is letting bad news slide off it's back again these days...Probably because the PPT is hard at work making the market look better than it should due to the upcoming mid-term election on November the 2nd...
Basically, the market has been trapped in a trading range between 1020 to 1120 since the beginning of June, with two failed attempts to break above the 200 day moving average (not shown on this chart, but the current reading is 1116.16)...It is again at the upper end of the trading range, and I feel it's time for a pullback...But of course, it's not up to me...
IF the $SPX can convincingly break above the two levels of resistance it's had in the past at this level it's at, that would be Bullish...IF it pulls back and closes below the September 7th level of support, there's a good chance it will fall fast and furious back to the lower end of the trading range again...
http://images.investorshub.advfn.com/images/uploads/2010/9/18/kktkv1SPX-CCI.JPG
Here is the Economic Calendar for next week...There is a lot of housing data due out this week - which will most likely remain weak, plus the FOMC Meeting announcement is on Tuesday at 2:15pm...Durable Goods Orders is another one of the more important reports due out on Friday an hour before the opening bell, and keep an eye on the weekly Jobless Claims numbers due out on Thursday an hour before the opening bell...
Happy Trading next week!...
zigzagman
http://images.investorshub.advfn.com/images/uploads/2010/9/18/esivs1ecocal.JPG
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