Friday, July 3, 2009

Technical Analysis


Weekly chart
the move since early March took the market as high as 956 from a low of 670.

S&p future is trading around 895 right now.(12.10pm amsterdam)

The green line shows the big support for the sideways market(880-940) . The big support starts from 890 getting its full strength at 880. A close around 870 is the stop level for me.
The retracement levels for the up trend are:

The 38% retracement is 847 marked with pink/purple line

The 50% retracement is 813 marked with yellow line.

The 62% retracement is 779 marked with the red line.

In my opinion below 779, this rally will be officially a bear market rally and we can go for a new test for the lows.

For the upside, the big down candle retracement levels are 38% being 940, 50% being 970 , 62% being 1000.

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