Tuesday, August 2, 2011

The Stock Market - Various Technical Analysis Aspects


The following chart is annotated by Ron Walker, ofthechartpatterntrader.com :


(click on chart to enlarge image)(chart courtesy of StockCharts.com)

As one can see, it is a chart of the S&P500 on a daily basis since March of 2009.  Yesterday's closing price of the S&P500 (1286.94) is very near the black rising trendline from the March 2009 low.

Other aspects of the chart that I find notable is the slowing price momentum since the 1344.07 high, as annotated.  There is a possibility of a "Head & Shoulders" formation, as shown.
Furthermore, one can see that the 200dma (in blue) has served as technical support a number of times recently.

In my opinion, all of the above serve to illustrate that the stock market is at an important crossroads here from a Technical Analysis perspective.
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The Special Note summarizes my overall thoughts about our economic situation

SPX at 1286.94 as this post is written

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