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S&P500 Update

Posted By Barry Ritholtz On May 13, 2011 @ 12:30 pm In Markets,Technical Analysis | Comments Disabled

S&P 500 Index (SPY) Trend Status Neutral

click for larger chart
[1]
Source: FusionIQ [2]

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Kevin Lane, CIO of Fusion analytics, observes:

“As seen in the chart above the S&P 500 tested support and bounced from the 1,330 area (lower green line) for the second time in the last six days.

Yesterday’s low also coincides with a rising uptrend line (orange line). That said we believe this is now the critical line that separates a continued extension of the current rally and the start of a spring correction. If this level is violated the trade will turn down for a while and it would be a time to keep the defense on the field for a while and the offense got a breather. For the trade to turn a bit more bullish the S&P would have to get back above the minor downtrend (purple line) near 1,350.”


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URL to article: http://www.ritholtz.com/blog/2011/05/sp500-update-2/

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[1] Image: http://www.ritholtz.com/blog/wp-content/uploads/2011/05/SPX-5.13.11.png

[2] FusionIQ : http://www.fusioniqrank.com

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