Sunday, November 30, 2008

S&P 500 resistance is near 965

The Stock Market Week - 11/28/2008

It was an up week for the major markets. For the week the Dow Jones Industrial Average gained 782.62 points, or 9.73%. The Standard & Poor's 500 Index gained 96.21 points, or 12.03%, while the Nasdaq Composite gained 151.22 points, or 10.92%.

The Financial sector was the strongest sector last week for the second week in a row, followed by the Consumer Discretionary sector.

The Utilities is the most overvalued sector now, followed by, Healthcare, while Gas Utilities, Drugs - Generic, and Major Integrated Oil/Gas are among the most overvalued industries.

Industrial Goods is the most oversold sector, followed by Technology while Metals Fabrication, Multimedia/Graphics Sftwr, Copper are among the most overvalued industries.

Standard & Poor's 500 Index Trend Analysis
Standard & Poor's 500 Index is in a long-term down trend that started on 10/11/2007 at 1576.09. According to the Elliot Wave Principle, the market’s progress ultimately takes the form of the five waves structure. The first (I) wave down has been completed on 1/23/2008 at 1270.05 and dropped almost 20%. According to the Wave Principle, the third wave is the strongest and the broadest and it generates the greatest volume and price movement. The third (III) wave down has started on 5/19/2008 at 1440.24 and dropped more than 48.5%, reaching 741.02 level on 11/21/2008. The third wave usually has the five sub waves structure itself.
Standard & Poor's 500 - Long-Term Trend
Technical Stock Market Timing System
The sub wave 5 down of the long-term down wave three (III) is in progress. Elliot Wave principle considers the wave five as the last sub wave in impulse wave structure. The fifth wave is usually less powerful than the third wave; it shows slower speed of price change and presents bullish divergence between price and technical indicators. Daily and weekly technical indicators have bullish divergence. Bullish divergence is usually considered as an indicator that bears are losing power, and that bulls are ready to control the market again. Often bullish divergence marks the end of a downtrend, but it may mark the consolidation period before the next down move as well.
The resistance trend line is near 965 now and the support trend line is near 738. It is quite possible that S&P 500 index will turn down to retest the support line once more.
Standard & Poor's 500 - Long-Term Trend
Technical Stock Market Timing System
Presented by www.thegreedytrader.com Research Group.

Sunday, November 16, 2008

S&P 500 technical indicators have bullish divergence

The Stock Market Week - 11/14/2008

All the major US indices were negative. For the week the Dow Jones Industrial Average dropped 446.50 points, or 4.99%. The Standard & Poor's 500 Index dropped 57.70 points, or 6.20%, while the Nasdaq Composite dropped 130.55 points, or 7.92%.

Industrial Goods and Technology are the most oversold sectors, while Utilities and Healthcare are the most overvalued sectors.
Standard & Poor's 500 Index Trend Analysis
Standard & Poor's 500 Index is in a long-term down trend that started on 10/11/2007 at 1576.09. The third (III) wave down has started on 5/19/2008 at 1440.24 and lost almost 43.3% reaching 816.69 level on 10/14/2008.

The sub wave 5 down of the long-term down wave three (III) is in progress. Elliot Wave principle considers wave five as the last sub wave in impulse wave structure. The fifth wave is usually less powerful than the third wave; it shows slower speed of price change and presents bullish divergence between price and technical indicators. Daily and weekly technical indicators have bullish divergence. Bullish divergence is usually considered as an indicator that bears are losing power, and that bulls are ready to control the market again. Often bullish divergence marks the end of a downtrend, but it may mark the consolidation period before the next down move as well.
Standard & Poor's 500 - Long-Term Trend
Technical Stock Market Timing System
Presented by www.thegreedytrader.com Research Group.

Sunday, November 02, 2008

Major indices have formed a triangle chart pattern

The Stock Market Week - 10/31/2008

It was an up week for the major markets. For the week the Dow Jones Industrial Average gained 946.06 points, or 11.29%. The Standard Poor's 500 Index gained 91.98 points, or 10.49%, while the Nasdaq Composite gained 168.92 points, or 10.88%. Our Weekly Picks portfolio gained 17.24% for the week.

All three major indices have formed a short-term descending triangle pattern. Usually, in a mature trend a triangle pattern is considered as a reversal pattern.
Dow Jones Industrial Average - Short-Term Trend
Technical Stock Market Timing System
Standard & Poor's 500 - Short-Term Trend
Technical Stock Market Timing System
Nasdaq Composite Index - Short-Term Trend
Technical Stock Market Timing System
Standard & Poor's 500 Index Trend Analysis
Standard & Poor's 500 Index is in a long-term down trend that started on 10/11/2007 at 1576.09. The third (III) wave down has started on 5/19/2008 at 1440.24 and lost more than 40% reaching 839.8 level on 10/10/2008. The chart has formed a short term descending triangle pattern. The chart retested its low on 10/28/2008 and rebound sharply from 845.27 to 984.36 just is four days. The sharp rebound from the support level confirms the end of the short-term sub wave 3, and it may be the end of the long-term wave (III) as well. The weekly Lane's Stochastic is still oversold, but other daily and weekly technical indicators are natural. The resistance level is around 1070, and then 1140.
Standard & Poor's 500 - Long-Term Trend
Technical Stock Market Timing System
Presented by www.thegreedytrader.com Research Group.