Friday, May 09, 2008

$SPX Update for 05.09.2008

S&P 500 INDEX - $SPX

Monthly chart shows some selling pressure early into the month of May 2008.

Weekly chart shows a bearish engulfing pattern, as this past week's trading activity retraced almost all of the gains made last week. Look to see if we will get follow through next week or not.

Daily chart shows index closed below the 8ema. The bears gapped down the index at the open of Friday's trading, in their haste to exit their positions. The index closed on the low for the week. Look for continued weakness into next week. IF the bears are able to send the index back down to re-test the January low, THEN I expect it to be broken eventually.

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