Stock Market Update – Bullish????
| May 13, 2010 | Posted by admin under Stock Market Analysis, Swing Trading Ideas |
Yesterday I posted an analysis, and said that we had a potential bear set up, but the high and low of Tuesday would provide better indication. Well, the market pulled out another strong day closing out above Tuesday’s high. If we can hold that level it makes a test of 1182 very likely. At the moment that is critical resistance. A move through that level indicates probably one of the most violent and vicious bear traps (basically a false breakout to the downside) I have ever seen in my trading life.
Thus, a rise above 1182 has a target of 1200-1205. If that is a taken out then the highs are likely to be tested.
On the downside, a reversal below Tuesday’s open and Wednesday’s low both right around 1155 would indicates bearishness once again. The old trendline is also right in this region. Support levels can be seen on the chart from yesterday.
On another note, I get a lot of emails from people who want to trade, but don’t have the capital to day or swing trade stocks or futures. The answer I usually give is that one should make sure they approach the markets understanding one of the most common problems in trading is doing so when one is undercapitalized. That said, we all start somewhere and there are alternatives in trading which are less capital intensive. One broker I trade with offers trading in:
DAX 30, Dow Jones Industrials, Hang Seng Index, MSCI Taiwan, NASDAQ 100, Nikkei 225, NSE Nifty Index, Russell 2000, S&P 500, SPI 200 (ASX).
Plus also trade Oil, Gold, Platinum and Silver all from the same platform and ALL commission free. You will also be able to trade Currencies from the account. Open accounts with as little as a $100 or open a demo account and try it out for free. This allows anyone to be able to trade major indexes and commodities.
The video introduces you to the broker, but you will also find many other great tools and benefits of trading with this broker on the page:
Check out an introductory video here: http://www.forexyard.com/en/landingpage_html.tpl?zone_id=2925&lp=landpromo1
Cory Mitchell, CMT
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[...] Stock Market / S&P 500 update: With continued volatility the signals are coming in like they normally would over several days. Based on the daily chart, yesterday I discussed the high of Wednesday being a critical level if we could stay above it… well we opened below and only briefly moved above it before falling dramatically towards the end of the day. This is bearish. The candle stick pattern is called a Bearish Harami. If you pull up a daily candle chart of the SP-500 you will see today’s main candle body is contained within yesterday’s body, but today retraced a significant portion of it. Confirmation of this pattern is suggested, and would come from a move below 1155 (as mentioned yesterday). So our levels to watch remain the same as yesterday, we have just thrown in another piece of information. While I say 1155 is the level to watch, a lot of technicians are watching 1150. Thus 1155 may be early signal, and 1150 can be used for further confirmation or as another trigger point. For additional price points to watch please see yesterday’s analysis here. [...]