S&P 500 has a distribution day on 20th March 2009.Â
We can see that S&P continue to face resistant at the 800 level. A break through above this level could suggest continuous ‘up trend’. However, we need to be careful about a continuous ‘bear rally’.
With this turn, the chart is suggesting the rally is losing its momentun.
We might see it move down and rebound off the support level at 675 (as shown by the chikou span – green line).
Most likely, we will see a rebound off a lower level, and what we want to monitor is whether the index break out of the 675 – 800 trading range.