Hourly, Daily, Weekly, Monthly
Friday, January 29, 2010 at 7:55AM Here is a look at SPX on various time frames. It is important to view the market on various time frames to get a board sense of where the market can go. The longer the time frame the more important the support or resistance.
SPX Hourly:
This chart shows the bears victory over the past couple of days, but more importantly for the bears it shows the market is not dropping down, but trending down. The 21 Ema has been able to contain and advances by the bulls. One caveat for the bear is the bullish divergence in the MACD and RSI that has formed.
Daily:
The market has moved below it's significant bullish/support levels. It has broken below its 20,50 and 89 Day emas. It also broke below the 1100-1000 level which was a significant support level for a while. 1082 is the next strong support level and a break of this would send the market lower. Resistance levels now reside from 1095-1100 and above. Notice the increase in volume during the sell of this week. Stoch is now oversold but can remain there for a while or work off the oversold through market chop. MACD is not giving a clear signal but a drop below the zero line is bearish.
Weekly:
My initial target for SPX was 1158, based on the AB=CD move pattern. SPX reached 1150 not to bad, my puts were only underwater for a little. Notice the 200EMA was able to contain any advance by the bulls, the long-term down trendline also contain the advance. The next strong support level is the 1060-1040 area, this area is home to many of the longer-term moving averages. It is also an area of previous support of the market.
Monthly:
Monthly resistance was the long-term down trend from the market top as well as some long-term moving averages. The up trendline from March is now broken on the Monthly time frame and support is in the 1060-1040 area similar to the weekly.
The market has sold off the last couple of days and may be nearing a bounce but so far all bounces have been sold into. The bears can take comfort in that the market now has significant resistance above it, but there might only be another 3-4% downside left to this market. If the market does reach 1050 and below it will be time to look at the charts again.
SPX
Reader Comments (2)
I love you charts. I wish you posted more. I use to be able to click to zoom in on your graphs. This does not work anymore so they are hard for me to read... Can you fix it so I can click to see the full image?
Hey Jon, Thanks for the comment. I plan on posting more and you got it, I will make the charts available to zoom in. Thanks for the comment