Tuesday, May 25, 2010

S&P500 Resistance & Support Levels To Watch (05/25/2010)

S&P500 fell to 1040.78 . As I mentioned in my previous post 1044 was the support, we moved below it then bears start to cover and we got the classic short squeeze again!
I don't like the action today to me it was not any where close to "reversal day". I was looking for indicators to see if big institutions are buying, but there was not any big buyers. I will remain bearish on the long term U.S. stock market out look, but I'm going to change my short term out look on market from bearish to neutral. Please pay attention to 1100 and 1130 as major resistances. Note there is nothing has changed in Europe, so it's too soon to cheer. It's not wise to buy unless S&P500 shows some strength.
If S&P makes a new low and falls below 1040 and stays there over 3-4 days, bulls are in big trouble.