S&P 500 INDEX - $SPX
Monthly chart extremely bearish, with index trading well below all its key moving averages and the down trendline in place. Index has broken through the key LIS and low made on October 2002. Old support now becomes new resistance. Aggressive bulls found short term support off a .618 fib level and my target 3. No buy signal/pattern evident on this timeframe.
Weekly chart remains very bearish, with the index trading well below all its key moving averages and all the down trendlines in place. The bears managed to end the week by dragging the index to close down below the smaller key LIS and prior support of 741.01 which was made in November 2008.
Daily chart shows the index found short term support off the 666.79 level. Friday's trading session ended in a doji candle pattern, indicating indecision between the bulls and the bears. IF we see this short term support level holding, THEN look for agressive bulls to step back into the market next week. The pattern that price has traced out looks to be a bullish butterfly candle pattern.
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