Sunday, March 15, 2009

$SPX Update for 03.15.2009

S&P 500 INDEX - $SPX

Monthly chart shows that aggressive bulls stepped back into the market at the key potential support level of .618 fib and target 3. This .618 fib support level is based on the entire move up in the index from the low made in March 1980 into the October 2007 high. Resistance is directly ahead at the key LIS and the October 2002 low. No buy signal/pattern on this timeframe. With two more weeks to go before the trading is complete for the month of March 2009, anything can happen during this time.

Weekly chart shows that the past week's trading session resulted in a bullish engulfing candle pattern. The bulls managed to close the week above the small key LIS and the November 2008 low. Will this pattern have any follow through, or will it fail like the pattern made in November 2008? Only time will tell. This week's bullish pattern was made with regular divergence on the CCI momentum indicator as did the previous pattern.

Daily chart shows that the doji candle pattern made the week before provided a signal of a possible major move, which played out to the upside this past week. The bullish butterfly pattern identified last week also gave a heads up as to the next likely move.

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