Friday, September 10, 2010

Another bullish week

Second bullish week in a row with SPX slightly clearing two resistance levels, 1105 and the downtrend line (today around 1100). DMI remains slightly positive but I would like to see the green line clearly above the red one.

On long term I won't consider the major leg down over unless DMI on weekly chart turns positive. It did turn negative at the beginning of May and never changed back to green. Notice that the downtrend line on weekly chart is around 1092. Also notice that SMA75, the moving average that was the support for both 1990-2000 and 2003-2007 bull markets, resides around 1057, the same place where we can find the current uptrend line so we have a double support level at this level.

Not too much change on 60 minutes chart either, the "buy" signal generated around 1080 remains intact and the price is above a rising 5 days SMA.

Let's see if SPX is going to challenge SMA200 (around 1115) on Monday or is going to pull down a little bit towards the downtrend line before trying to climb further up.

Have a nice week-end!


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