The Stock Market Week - 3/27/2009 | ||
| It was an up week for the major markets. For the week the Dow Jones Industrial Average gained 497.80 points, or 6.84%. The Standard & Poor's 500 Index gained 47.40 points, or 6.17%, while the Nasdaq Composite gained 87.93 points, or 6.03%. The Financial sector was the strongest sector for the second week followed by the Industrial sector. The Utilities sector was the worst performing sector for the second week followed by the Health Care sector. Technology, Services, and Basic Materials are the most overvalued sectors while Agricultural Chemicals, Auto Parts Stores, and Copper are the most overvalued industries. Conglomerates and Financial are the most oversold sectors while Regional-Pacific Banks, REIT - Diversified, Gaming Activities, and REIT - Retail are among the most oversold industries. | ||
| Standard & Poor's 500 Index Trend Analysis In our last publication on February 22 we have suggested that downtrend should be completed in approximately a week or two (February 25 – March 6) with the target around 650. The S&P 500 downtrend has been completed on March 6th at 666.79. A strong uptrend is in progress now. S&P 500 index has reached 832.98 on Thursday posting almost 25% gain since March 6th. Standard & Poor#39;s 500 Index is in a long-term downtrend 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. | ||
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| Since 11/21/2008 the S&P 500 chart has formed the broadening descending wedge. The formation might be completed, but there is a chance that it is still in progress. In this case the price may reach the resistance level and turn down to retest the support line. | ||
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| Daily Williams' % Range (W%R) is strongly overbought and Lane's Stochastic is overbought. The price uptrend may pause for a while to reset technical indicators before the next up move toward the resistance line. | ||
| Presented by www.thegreedytrader.com Research Group. | ||
Sunday, March 29, 2009
S&P 500 chart has formed the broadening wedge
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