Few days ago, I was still looking at the US market swing in the sideway market. However, US market took quite a big dive on Thursday while Dow Jones lost 400+ points. S&P500 also dived down to the S&P500 2002 low of 768 level.
Let’s take a look at the S&P500 stock index chart now!
S&P500 Support at 2002 Low
After a deep dive on Thursday, it was good to see that market rebounded on Friday after anticipating from the good news of Obama’s appointment of the next Treasury secretary. It also showed that there is an inflow of the market player to come in to bottom fish or value buy. That helps to support the S&P500.
If you did follow my blog and analysis all this while, I have been issuing warning week by week, month by month that the US market is bearish and Technical analysis does suggest the S&P500 can dive down to 2002 level, which it indeed happened. That’s the power of technical analysis (TA).
If you have not picked up TA, it might be good time that you start to learn now. As it will guide you through this volatile and bearish market now. It gives you some tips and hints on entry and exit signals. Though not 100% accurate, but it does give you some information and data to make an informed decision and knowing your risk exposure. That’s far more better than blindly buy in and out in the market without looking at data. That’s just like Gamble and you are playing to LOSE 100% if you are behaving that way.
Anyway, I just like to emphasize the point that TA is very important. Let’s now look at the S&P500 again.
S&P500 Resisted at 845
Looking at the current trend on the chart now, I believe S&P500 will be support at the 2002 low level. The market dived down to low level of 747 on Thursday, it opened lower at 741 but it closed higher on Friday. So, the support will be 741 level. The immediate resistance will be 845 which was the previous support that I indicated in my previous post.
So, if you are trading index future, here’s the level for you to watch in the coming week. Sideway market between 741 to 845 on S&P500.
S&P500 Stock Market Trend Nov 2008
DISCLAIMER: This information is used for learning purposes only. It does not constitute an offer or solicitation to buy or sell. You should do your own analysis on top of my postings.
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