Thursday, April 30, 2009

Markets: A Look at the Charts.

Update here.

Original post.
The S&P 500 is trading around 874 with a few minutes to go.
First up, MarketBeat:
Technicians are grappling with the market’s recent upturn, trying to determine if the positive move will have legs.

Most broad market technical analysts prefer the S&P 500 to the Dow Jones Industrial Average when drawing their chart lines. For most of them, the level of 875 on the S&P 500 is seen as a key level. The measure crossed over 875 yesterday, but failed to close above it. Today, we’re seeing similar action, with the S&P 500 drifting lower after a strong opening.

It’s likely that the market will skirmish fiercely around that level today. A close above 875 would certainly prompt technical-minded traders to get into the market. Brown Brothers Harriman recommends “investors use a definitive close above 875 as a buy trigger” saying that a “standard projection” would take the S&P 500 to 925 with January’s high of 943 being a significant future landmark....MORE

From Bespoke Investment Group:

S&P 500 Breaks Another Resistance Level

...Since the March 9th low, the index is now up 33%. The next level of resistance is between 903 and 908, which is the 2008 closing level and a place where two peaks occurred late last year.