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Joined: 28 Dec 2005 Posts: 11980
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Posted: Fri Apr 18, 2008 11:22 pm Post subject: SPX: Volatile Uptrend |
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It's possible SPX will create a bullish inverse head & shoulders pattern by falling to roughly 1,300 in May. However, the SPX weekly MACD suggests a volatile uptrend instead (see first chart). SPX closed April options expiration week at 1,390. A major prior resistance level is 1,400 and another major level (previous resistance and support) is 1,360. However, a wider range may take place, e.g. between 1,330 and 1,400, short-term before a break-out above 1,400.
The second chart shows the CRB index, which reflects energy, metal, and food prices. The CRB weekly MACD shows a "bullish kiss" suggesting higher prices over the next few weeks. Rotation between commodity and non-commodity stocks will be a major factor of SPX volatility, particularly after earnings season (also see third chart, i.e. SPX and CRB comparison chart).
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