Thursday, June 16, 2011

Stocks Test Critical Support Levels


Above is a daily chart of the S&P 500 along with the 200 day moving average.  The market is now sitting right on this important and most watched technical average. 

As you can see, this decline is larger in price and time than the previous retracements which in my opinion is a sign that the uptrend which began in July of 2010 may be over. I wouldn't be surprised however to see a bounce here as the market is oversold and is at the 200 day moving average. The VIX also moved much higher today indicating some degree of panic or fear. I would like to see a bounce from these levels so that I can look to get short again.


3 comments:

Anonymous said...

Love your stuff Kevin. Have been following for a while. Always to point, efficient and spot on.

Kevin said...

Thanks...It's comments like yours that keeps me going...Thanks again!

Anonymous said...

Thanks kevin, you need to drawn those trends lines in. Doing that will help see where the big picture lies but you did a great job.

Your anaysis reminds me of the guy over at forecastfortomorrow.com/Trading-Club He called the market crash in 2008 and has a great resource there, and nailing these markets, well worth a look.

DISCLAIMER

This site may include market analysis. All ideas, opinions, and/or forecasts, expressed or implied herein, are for informational purposes only and should not be construed as a recommendation to invest, trade, and/or speculate in the markets. Trading and investing involves high levels of risk. Any investments, trades, and/or speculations made in light of the ideas, opinions, and/or forecasts, expressed or implied herein, are committed at your own risk, financial or otherwise.
 
Google
Technorati Profile Finance Blogs - Blog Top Sites