Monday, April 19, 2010

Technical outlook 19/April/2010

Above you see the daily chart in s&p, where it tried to break into the upper channel but failed, and bounced from 20 day MA which sits at 1182. If broken, next support will be btw 1133-1140, around the intersection of MA50 and MA80.
The market headed to 1200 faster than I imagined, the uptrend seems to be stronger but I still think once the technicals point to a downtrend (most important being MA 20 crossing MA200 to the downside-death cross!) the market will be more realistic in trems of reflecting fundamentals.

See the weekly chart hitting resistance at 200 week MA.
Overall, the market is still in the uptrend, still any weakness is bought into and it is higly likely to see new highs.I still sit out and wait for a clearly defined situation to be in the market, or to be more clear, to short the market, till then it is a good experience to see how technicals move the market against the fundamentals.

No comments:

Post a Comment