|
From major support to major resistance in two days; the yo-yo market continues. The Dow and S&P (first two charts below) are right back at the upper channel lines that have been cause for a pause for the last 3-4 months. If recent trading history holds, the indexes should bump up against the lines for a few days, making modest progress before pulling back. On the other hand, if they can push through, we'll either get buyers' exhaustion or a moonshot. No pattern continues forever, but this one has been persistent and fits both the seasonal and four-year pattern, so it could well hold up until mid-year. We'll give it the benefit of the doubt until the pattern changes. That doesn't give the indexes much upside room in the next couple of days, say 1459-1460 on the S&P and 12,775 on the Dow. 12,700 is first support on the Dow, with 12,607 a key level below that, and the S&P has support at 1453, 1450 and 1443-1446. The Nasdaq (third chart) finally took out 2471 again, but then got stopped at a downtrend line off last month's high. 2494-2495, 2500 and 2509 are resistance, and 2471 should once again be support. Stocks weren't the only thing Bernanke gave a boost to today (see 10-year yields, fourth chart). Yields have a lot of support between here and 4.69%, however.
Price Movements in Speculative Markets: Trends or Random Walks.::
File Format: PDF/Adobe Acrobat - View as HTMLYour browser may not have a PDF reader available. Google recommends visiting our text version of this document.at Chicago, one weekly and one monthly, and the last was the spot lustrates the familiar tradeoff between reliability of the information
http://history.technicalanalysis.org.uk/Alex64.pdfHOME |
 AMAT, Bernanke Boost Stocks
 Senator Introduces 'Disappointing' E-Vote Reform Bill |
Technical Analysis: Back in a Familiar Spot