Technical Talk: S&P 500 action calls for caution

 EmailPrint This Post Print This Post

The comments below were provided by Kevin Lane of Fusion IQ.

As is evident in the chart, the S&P 500 Index still remains in an uptrending wedge (green lines). However, for the last two weeks it has rallied above but then fallen back below its downtrend line (red line). While two weeks of stalling at resistance is not a major concern yet, it does at the very least raise a cautionary tone given the fact that the S&P 500 has had such a large, uninterrupted advance.

Weekly momentum indicators are losing momentum and are close to flashing some sell signals; however, until near-term support is broken near 1,026 (blue line and arrows) it is hard to become too negative.

So, to reiterate, some yellow lights are flashing but the bottom line is the trend is up and still intact and only a move below the 1,026 level would be seen as a negative.

lane40

Source: Kevin Lane, Fusion IQ, November 30, 2009.

Did you enjoy this post? If so, click here to subscribe to updates to Investment Postcards from Cape Town by e-mail.

More on this topic (What's this?)
Nearly 70% Of S&P 500 Stocks In Correction Or Bear Market Territory
S&P Approaches Critical Tipping Point
S&P500 Getting Ready to Break
Read more on S&P 500 (SPX), Airiq Inc at Wikinvest
OverSeas Radio Network

Leave a Reply

  

  

  

You can use these HTML tags

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Top 100 Financial Blogs

Recent Posts

Charts & Indexes

Gold Price (US$)

Don Coxe’s Weekly Webcast

Podcast – Dow Jones


One minute - every hour - weekdays
(requires Windows Media Player)
newsflashr network
National Debt Clock

Calendar of Posts

December 2009
MTWTFSS
« Nov Jan »
 123456
78910111213
14151617181920
21222324252627
28293031 

Feed the Bull