Thursday, September 23, 2010

S&P500 Technical Analysis (09/23/2010)

It seams my first scenario is coming to play(to see the article click here), S&P500 broke the 1131 support level. It's critical for S&P500 to get back above 1131. If S&P500 stays below 1131 for a couple days; it would signal more sell-off in coming days. As I explained in my previous post, if this is a real rally big institutions must step in and buy on heavy volume, otherwise what we witnessed in last couple days was short squeeze, not a real rally. Please note as long as S&P500 stays above 1100; we have a good chance to move higher. We rallied 9.6% in 3 weeks, therefore 3-4% pull back is normal.
At this point I'm not sure if this is a pullback or we are rolling over, therefore I recommend to play safe and lock profits.


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S&P500 Technical Analysis (09/19/2010) :