Thursday, June 11, 2009

S&P500 Technical Chart,June 11th

S&P500 60-Minutes chart formed a flag that should shoot higher. 950 is level to watch this week, if it could move above 950, the flag fomation would come to play. Note that if S&P500 stays above 200 EMA, it would have potential to test 1000 level. I'm not bullish by no measure,but tape signals possible move higher. On the other hand all indicators show over bought which is in contradict with pattern. Overall it shows the consolidation phase before a big move, If I get the chart right we should head lower in coming weeks. Question is; are we going down before S&P500 hit the 1000 or after that?