Sunday, July 19, 2009

Weekend Review (07/13-17/09)

S&P looking bullish as we are trading above levels of support around 930 and above the main ma's but for a confirmed uptrend we need to see the 10 above the 20 above 30 and so forth. We are also approaching resistance levels in the 950 area and I'm expecting a move back down to the decending trendline of the channel we broke out of or a 50% retracement to 906. Unless we break our most recent lows of 868 I will be adding long postions on a any retracements.

If we do make a move down to the trendline or 50% reracement and make a move back up we would be forming and inverse h/s pattern. Way too early to trade it but just something to looking out for.

Nasdaq looking much more bullish as it broken into new highs and extended it's gains trading well above its ma's. A move down to the trendline it broke out of I will use as a buying opportunity or a 50% retracement down to 1460.

Looking at the larger picture we can see that there is very little stading in the way of this market making a move higher.

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