Saturday, May 30, 2009

S&P500 Technical Analysis End-Month Update

Despite the volatile market my prediction worked out very well. S&P500 started to form a down trend channel I pointed with dotted blue line. At this point this channel has not conformed yet, but in coming days we will see what is going to play out.
If we move higher I expect to find many sellers at 200 EMA. 940-950 are the next levels to watch.

Friday closing action was ridiculous. Big institutions manipulated the market and manufactured +1% rally in last 10 minutes of closing. I doubt any savvy investor jumps in the market in the last 10-15 minutes of closing and put his money in danger specially when GM is getting close to file for bankruptcy. It just does not make any sense.
The money managers have to show to their investors that they had good month therefore they manufactured a rally that ignited a huge shortsqueeze.