S&P 500 charts

Daily chart of the $SPX...dashed lines are broken trend lines. 60 period stochastics are at 55, 20 and 50 day MA's remain below and could act as support. We have declining volume, slowing price momentum and a high VIX to contend with, so the rally may be put on hold this week. 838 and 878 offer resistance as well as the major down trend line here are the major support and resistance levels courtesy of Robert Colby at traderplanet.com:
Potential Resistance:
1,576.09, high of 10/11/2007
1,552.76, high of 10/31/2007
1,523.57, high of 12/11/2007
1,498.85, high of 12/26/2007
1,440.24, high of 5/19/2008
1,406.32, high of 5/29/2008
1,366.59, high of 6/17/2008
1,335.63, high of 6/25/2008
1,313.15, high of 8/11/2008
1,274.42, high of 9/8/2008
1,255.09, high of 9/12/2008
1,238.807, Fibonacci 78.6% of 1,576.09 high
1,220.03, high of 9/25/2008
1,077.08, Fibonacci 61.8% of 2002-2007 upmove
1,044.31, high of 10/14/2008
1,007.51, high of 11/4/2008
943.85, high of 1/6/2009
881.39, Fibonacci 23.6% of 2007-2009 drop
877.86, high of 1/28/2009
839.80, low of 10/10/08
838.01, Fibonacci 61.8% of January-March drop

To discover the next Support, traders probably will be watching how the market acts at the following levels for the S&P 500 cash index:

Potential Support
666.79, intraday low of 3/6/2009
665.23, Fibonacci 61.8% of 2002-2007 upmove
602.07, Fibonacci 38.2% of 1,576.09 high



Based on closing prices, the S&P is up 23% in 13 trading days. This makes the bounce the second largest since the top on 10/10/07. The last big bounce was from 11/20/08 to 1/6/09, when the S&P rose 24%, but that bounce was followed by a new low. From November 1929 to July 1932, there were 5 bounces between 20% and 23%, and all were followed by lower lows. That 50% fib is what I will be watching closely on Sunday night and Monday during trading hours.




Not much to say here....watch the overnight range and previous days, Friday, range, also watch the pivot point and that 819 level for resistance. Hope you all have a great week.

I will be only posting 1 TS program per day...otherwise it takes up a lot of blog space and I would like to get others to contribute...everything that is TS code is tagged as such so don't worry about missing out...they will all be archived.

Absolution