Sunday, December 14, 2008

$SPX Update for 12.14.2008

S&P 500 INDEX - $SPX

Monthly chart shows continued weakness, with the index remaining well below all key moving averages and the down trendline in place. Bottoming tails on the last three candles indicates short term support in place. However, there is no conviction by either the bulls or the bears. No buy signal/pattern evident at this time.

Weekly chart shows last week's trading session resulted in a doji/spinning top candle pattern, indicating indecision between the bulls and the bears. The traders ended last week's trading session pretty much where they left off the week before. Index remains below all key moving averages and all down trendlines in place.

Daily chart shows short term support in place, with the bulls struggling to take the market higher. Short term trend is up, as we have higher highs and higher lows. However, price action indicates consolidation/trading range pattern being traced out. Look for major resistance to be at the October 14, 2008 high.

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