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Joined: 28 Dec 2005 Posts: 11987
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Posted: Sun Jul 16, 2006 11:05 am Post subject: Intermediate-Term Technical Indicators |
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The first chart is a current SPX daily chart with intermediate-term technical indicators and the second chart is the same chart of last week. Even after the steep SPX fall last week, the intermediate-term indicators remain bullish. However, short-term technical indicators are still somewhat market bearish even after last week's SPX fall. Also, next week is options expiration week, which are typically volatile and bullish.
Another Mideast conflict, with rising oil prices, are potentially negative enough for SPX to fall below the 1,219 recent low. Also, the PPI is Tuesday and the CPI is Wednesday. However, the bulk of earnings will be reported over the next two weeks, which is potentially positive enough to at least generate a great deal of volatility. SPX may continue to make lower highs over the next two or three months. Consequently, a fall below 1,200 seems inevitable, while upside becomes more limited.
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