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S&P Anlaysis for Week of Nov 2 – 6
| October 31, 2009 | Posted by admin under Stocks & Stock Market Analysis, Techncial Analysis Tutorials |
The sham of a GDP number (see: http://vantagepointtrading.com/archives/2055 ) gave false optimism on Thursday ; the reality of the situation is more congruent with Friday’s action. But let’s look at the technicals:
Rallies on the S&P 500 in the upcoming week can be expected to experience resistance at 1042 and if that fails to hold then 1061. A rise beyond that in the current climate is unlikely, but is (small percentage) possible. A rise above 1070 would signal this market has plenty of buyers (or short coverings) and is good for another move higher.
Even Chuck Norris is short....but I am not gonna tell him.
If Monday trades through 1032 it is likely the market will continue lower, although this is not really an important technical level. A continued move below 1029 points to a test of former swing lows at 1020 and then beyond that 1005-1000.
Based on a daily chart trendline the uptrend was still intact until Friday. A down day on Monday indicates the trend has in fact been broken and we are due for a larger correction.
Happy Trading,
Cory Mitchell, CMT
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