When you take a look at past 9 or 10 trading days, the stock market has been moving up and down within 1-2% range. Right now, neither buyer nor sellers are stepping up to the plate and driving the stock market. In S&P 500 index this consolidation range is clearly set between 1175 and 1200. Within past 9 trading days, we saw S&P 500 reach 1200 range four time and 1175 four times. How long do you think this trend will continue? I’m sure there will be a breakout coming really soon. If you have been following my blog, you know I am predicting the stock market to break down below 1175. However, there is no guarantee so the best strategy would be to wait and make sure the breakout occurs before investing your money.
If S&P 500 breaks above 1200, then we will likely see 1230 range as it is the next strong resistance. Similarly, if S&P 500 breaks below 1175, then we will see 1150 or even 1130 as these are next support levels.
I found a short video on youtube on the technical analysis performed on S&P500 index. I would fast forward to 3:06 part of the video.
Lastly, as we get closer to Christmas, everyone should be aware of the “Santa Clause Rally”. Last year, there was a strong rally between December 21, 2009 – January 7, 2010. Will we experience a repeat of last year’s rally?
Lastly, as we get closer to Christmas, everyone should be aware of the “Santa Clause Rally”. Last year, there was a strong rally between December 21, 2009 – January 7, 2010. Will we experience a repeat of last year’s rally?
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