S&P 500 Review (Chart as of 25 June 2009)

As posted on April 30, S&P has some space for a bullish run.

Previously I highlighted that it will face resistant from the kumo on the Weekly Chart.

Following is an update:

1. As expected, the kumo on the Weekly Chart is fairly on the spot. S&P touches it and start making an about turn. Moving forward, we still see major resistant for the S&P. The kumo suggest resistant level all the way till S&P at about 800.

2. On the Daily Chart, we have just seen the Tenkan sen crosses the Kijun sen. Volume has drop since May. A sign that the most buying-n-selling are done.  On the Daily Chart, we see some support at 893. However, there is a chance that the forward kumo is going to twist and show a bearish trend.

2009Jun-S&P 500-800x600

2009Jun-S&P 500-800x600_Daily


SPX : A Bullish Signal (Chikou Span Breaks Through Kumo)

Yesterday, little rally has seen Chikou Span breaking through the kumo.

If the index can continue to hold above this level and at much higher volume, it will be a great signal to load up some stocks.

The Weekly Resistant is at 932; quite a fair bit of space to make some bullish trades here.

However, I will need to see SPX moving up and closing above to feel  870 completely to be sure.2009apr-sp-500-800x6001


S&P 500 : Will it turn now?

Yesterday’s continuation of S&P 500 rally has seen it reach a very important milestone.

On the chart, it has pierce through 828, but not with strong volume.

The missing volume is a critical factor as this is a level that has been tested 3 times this year before it finally break down.

Just as it is difficult to break down, I believe it  will be also face difficulties breaking through convincingly.

More importantly, we can see that S&P has now ‘slammed’ into the wall of kumo. 

I guess, the market is looking for catalyst next week. Perhaps the G20 meeting next week is a good catalyst to help it break through.

Nothing much has change since Geithner’s announcement of the ‘bad bank’ rescue plans. The economy is still not doing well.

We can’t expect S&P 500 to continue soaring and making new high, can we?