The S&P 500, even with the recent more aggressive selling, has not scored any structural breakdowns in trend. This suggests the recent "distributive wave" is more a correction of near-term over-exuberance than anything deeper.

Chart Watch – S&P 500 weekly chart with trend lines

Spx_2005_support

click for larger chart

chart courtesy of Redwood Technimentals

This
does not mean we can’t correct more after a modest bounce — but as of now, there is no evidence to support the notion that this
is the start of
a much larger correction — at least not yet.


Even with the recent pullback and moderating internals, neither support levels (red & green line – 1,175 and 1,160 levels respectively) nor the uptrend (black line) on the S&P 500 have yet to be violated.


.

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"Reality is merely an illusion, albeit a very persistent one."

-Albert Einstein

Category: Markets

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

One Response to “Chart of the Week: SPX Chart — support”

  1. david bennett says:

    According to my browser you seem to have linked 4 of your referances to the Asian times.

    I’ve commented on a couple of these subjects recently. Though it’s deep down in the my first comment and more developed in others I argue that gift cards aren’t necesarily evil. Already competition is forcing some concerns to associate them with discounts. I argue that they could evolve into store managed “savings accounts” linked to retailer created money, stores already isue credit, so this can start creating new “currencies.”

    http://www.seekingalpha.com/2005/01/activelymanaged.html#comments

    Although I didn’t see the article you linked to here’s another and my response to the notion that MS is about to eat it.

    http://www.internetstockblog.com/2005/01/technology_revi.html

    - David Bennett