New York  London  GMT  Tokyo  Singapore 
John Lee

Thursday’s Charting: S&P 500

By John Lee on September 26, 2008 | More Posts By John Lee | Author's Website


I was looking for the S&P 500 (SPY) to make higher lows, and it did that right from the beginning. You can see how the day held up around 1,207, but one thing I didn’t like is the sell-off at the very end. I typically want the day to end in strength in order for me to initiate long positions, and with the whole bailout proposal going…and going on for a while now, I opted to stay in all cash after making a cool overall 6% today.

Here is a 5-day chart and you can see where I expect resistance for tomorrow. If the S&P 500 penetrates 1,225 and if the subsequent pullback holds at that level, then I’m buying unless there’s significant weakness.

You can see that the overall chart of the S&P 500 still looks horrible, but note that yesterday formed a doji and today confirmed a reversal. 1,180 is major support and 1,220 is major resistance for the short-term.

If you like this article please...
Subscribe by RSS Subscribe by Email Email This Post To A Friend Email This Post To A Friend

Leave A Comment :

Name (required)
E-mail (required - never shown publicly)
URI
Subscribe to comments via email
Your Comment (smaller size | larger size)
You may use <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong> in your comment.
Opinions From Our Contributors
Commodities Financials Exchange Traded Funds
Stocks Forex Economy



Theme By: WordPress Theme Shop