Sunday, December 02, 2007

$SPX Analysis for 12.02.2007

Monthly chart shows uptrend remains intact. November's price action resulted in a monthly close below the 8ema, and below the prior high and key LIS. The last move up was made with divergence in momentum indicator.

Weekly chart shows early buying as evidenced by the long bottoming tail on last week's price candle. Weekly price closed right at the 8ema.

Daily chart shows strong support off the year's open with strong buying lifting the index to the 200sma and also prior support and key LIS. Current resistance is key for next week's trading activity. IF this area shows strong resistance, THEN look for a retracement to test the current low.

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