I charted the S&P 500 ($SPX) after the markets closed on Friday June 25, 2010 when it closed for the week at 1,076.76.
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Last week I pointed out a couple of bullish technical indicators on the INDU chart, but warned that it’d be wise to wait out the first couple of days
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I charted the S&P 500 ($SPX) after the markets closed on Friday June 25, 2010 when it closed for the week at 1,076.76.
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Last week I pointed out a couple of bullish technical indicators on the INDU chart, but warned that it’d be wise to wait out the first couple of days after options expiration Friday to be sure this rally was for real. Had you taken that suggestion as a good idea and kept yourself from jumping in too early you’d have saved a decent amount this week in most stocks. This upcoming week doesn’t look much better for upside potential, but the downside might be limited to retesting the previous lows from late May and early June.
After the SPX failed to stay above the 200 day moving average again the sellers had an easy time running the index lower. I don’t see a really good trend line to help pick a direction this week and expect to see more trading in the range where we’ve been stuck over the past month or so. The 1050 area is the key area to look for support. If it breaks the road farther south could be steep. The upper side I still think the 200 day moving average is crucial to watch. Last week the SPX only had one day that it traded above it for the entire day and then it went back to a back and forth, above and below day. The rally finally ended on Monday when the 100 day moving average proved too tough of resistance to break through. A couple of days after that we saw the 50 day moving average have a bearish crossover with the 100 day and that makes the 50 day moving average yet another hurdle to face before the SPX can climb higher.
I see the upper side of the trading range around 1,150, but think the 1,130 mark (the intraday high on Monday) could end up being a stopping point too. Volume has been low to average over the past month and Williams %R is stuck in no-man’s land. It sure does feel like the summer doldrums have hit Wall Street.
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