Tuesday, November 30, 2010

S&P monthly analysis

Today having been the last trading day of the month, it seems as good a time as any to have a look at the S&P monthly chart. With the index having closed in red for the month, the chart has is beginning to look a little bearish. New highs for the year were made this month, but they were made on a negative MACD divergence as shown in the chart below. MA(50) has been a major obstacle for the bulls ever since the market fell below it in the first half of 2008, and for the chart to regain its bullish character, the index will have to close above the monthly MA(50). According to this chart, the next major support levels for the index are at 1170, 1150, 1131.

















Take care and good luck!

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