Saturday, June 09, 2007

Technical analysis of indices.

The Dow appears to have found atleast short term support in an area of congestion from the early part of May. There has been a break of the uptrend line going back from the March lows and this could act as an area of resistance.

The S&P looks like it broke its uptrend in early May and it subsequently acted as resistance. There appears to be support at the 1490 levels of which it bounced yesterday and the 1480 level. The 50 day moving average alos comes into play and perhaps yesterday was a good time to go long the S&P due to 50MA support.

The Nasdaq had broken its uptrend line in early May too and it acted as resistance several times . There does appear to be support at the 2520 levels or thereabout. Worth noting like the S&P, the Nasdaq found support at its 50 day moving average.

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