Friday, July 30, 2010

S&P500 Technical Analysis (07/30/2010)

S&P500 Technical Analysis Chart:
On chart above you can see S&P500 has made lower high and lower low on the monthly bases in past 3 months. This pattern clearly observed in all major indices. This is a classic bearish formation right out of text book. We had a similar pattern back in 2007, which marked the beginning of very severe bear market. In past 11 weeks S&P500 has moved in a very tight range. We are not going to move side ways for a while. With in next 2 weeks we are going to break out. What you need to pay attention to in coming week would be the violation of 1100 & 1094 levels. as long as S&P500 stays above 1100 bulls would have the upper hand, but if S&P500 closes below 1094 and stays below it for 2-3 days, game over for bulls. On the other hand you must keep an eye of 1120 and 1131 on the up side. If big institutions manage to push S&P500 above 1131 you have no business to be bearish.

In the charts below blue lines show the High and red lines the low, on monthly bases.

DOW JONES Technical Analysis Chart:

NASDAQ Technical Analysis Chart:

DOW JONES TRANSPORT Technical Analysis Chart:

RUSSELL 2000 Technical Analysis Chart:

10-Year Note Technical Analysis Chart: