Top alert for 2014: MYGN (50%), LIVE (45%), CTIC (115%), KOOL (88%), PZG (32%), GOLD (6%), IOC (6%), RSOL(18%), PLUG (70%), IMMU (26%)

Wednesday, March 28, 2012

Technical Analysis of S&P500 and Dow Industrial Jones

So far market has been showing strength and all the shorts are getting squeezed everyday who are betting on sell off of this market. Each and every technical indicator have been proven wrong in last 5 month which showed a sell off is coming. Everytime when it seemed that the market will sell off, it bounced back with double strength and gained whatever small loss it made on a single or couple of day. The volatility is at the lowest level in the worst feared market.

Below charts shows 5 day chart of S&P500 and Dow jones with 20 and 200 day moving average comparison which shows gain inspite of very small sell off. This chart pattern has been same for last past 5 month. Everytime the chart has moved below 200 ma it has bounced with double strength with no volume of course. 

Once again the chart shows its ready for sell off if the S&P500 stays below 1416 level and Dow Jones below 13238 level. But the big question remain whether it will bounce back after sell off is to be seen. 
This market is way overbought which doesn't make sense.

Dow Jones 5 day chart

S&P500 5 day chart
Economic Calendar to focus for today are

MBA Purchase Applications
7:00 AM ET

Durable Goods Orders
8:30 AM ET

EIA Petroleum Status Report
10:30 AM ET

5-Yr Note Auction
1:00 PM ET

James Bullard Speaks
9:00 PM ET

Just stay away from this market.

No comments:

Post a Comment