Sunday, October 04, 2009

$SPX Update for 10.04.2009

S&P 500 INDEX - $SPX

Monthly chart shows the bulls managed to take the index up for seven straight months. The bulls managed to find initial resistance right at the .443 fib retracement area, where initial profit-taking took place. Look to lower timeframe charts for early signal of a more significant pullback.

Weekly chart shows the whole move up into the .443 fib area resistance was made in a three wave pattern so far. The new high was made with regular divergence seen in the cci Momentum indicator. Look for possibility of bigger retracement off this current high.

Daily chart shows a sell signal with a lower high made on September 29, 2009. Look for continued signs of weakness, and possibly much deeper retracement off this level.

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