S&P500 Now @ 50% Retracement Level

SP500 has been trading side ways for more than one month now and has once again reached 50% retracement level today.  It closed at $1118 with relatively low volume.  However, I expect SP500 to go down from here.  At this point, I just don't see this index going beyond 50% retracement level, which is at $1121 range.  We should see SP500 reach next two support levels at $1107 and $1097 within next week.

GOOG at $600 Resistance Level

After losing 50% in 2008, Google has performed really well in 2009. It has regained most of its loss from 2008 and currently is at a critical point at $600. $600 is a resistance level going back to mid-2008, the last time GOOG was trading at this level. One thing to note is that GOOG has been trading up in 2009 with decreasing volume and the volume has been declining even more since October. Also, keep in mind that those who own GOOG will start taking profits at this level. There is a good chance that GOOG has reached its peak short term and will head lower from $600. But, be careful because if S&P500 breaks its 50% retracement level at $1120, then GOOG will continue its upward movement along with the stock market. At this level, I would take the risk and SHORT GOOG with a tight stop-loss.







UPDATE on 12/24/09:
It looks like GOOG has cleanly broken its 50% retracement level.  I took the risk and shorted GOOG but fortunately my stop was very tight so I did not lose too much money.  Although GOOG could continue to go up from here, I am expecting it to eventually retrace back to $600 again to test now the support line.  Good luck everyone.


Other Related Articles:
How Would You Trade GOOG to Lock in Profit?
Short Opportunities
Technical Analysis on XLF
Technical Analysis: GOLD and S&P500

Let’s Look At GOLD YTD and SP500 in 2009

In 2009 Gold rallied to its peak of $1225 from its low of $814. This is about $36% profit. Recently, however, Gold has been on a downward trend almost every day in December to a retracement level at $1100, the 50 day exponential moving average. If buyers do not support this price level, then there would be further downward trend towards $1025 and critical $1000 levels. Gold will eventually start moving higher but the big question remains… how low will Gold go down before continuing its upward trend again? Be cautious not to re-enter Gold positions too early. Check out my previous post on Gold ETFs.

Other Related Articles:
Check out my prediction on GOLD back in December 2, 2009.

The S&P 500 has been on sideway trading since early November. It looks like S&P500 will not go beyond its 50% retracement level at $1120. Watch out for $1083 level. If S&P500 goes below this level, then everyone needs to get out of all LONG positions. I have a feeling S&P500 might just reach $1083 level soon in December. Check out some of the inverse ETFs that may do well as the market declines.

Feel free to leave a cooment on your predictions on Gold market and S&P500.

Other Related Articles:
First Contest!

What Technical Analysis is Telling Us - XLF

Let’s take a look at XLF – Financial AMEX Sector SPDR. If you look at the past 6 months history, it is clear that the support area is at the $14.00 area, which is also the 38.3% Fibonacci retracement from the July lows. You can also extract the Head and Shoulders forming. The head is in the October month with left shoulder in September and right should in November going into December. There are also negative momentum and negative volume forming starting from August. A clean break below $14.00 or $13.75 would be a major sell signal so follow this stock closely.

Other Related Articles:

Technical Analysis: GOLD and S&P500

SP500 50% Retracement Level

On friday, SP500 reached $1120 before falling to $1105. It's going to be difficult for SP500 to go above $1120 since it is 50% Fibonacci retracement from the low of this year. I'm pretty confident SP500 will touch $1120 level one more time this week but will not break this level. SP500 can only fall from this level and eventually, it will come back to $1120 at later date, sometime next year. Although it is less likelihood of occurring, but if for some reason the Bull becomes too strong and cleanly break $1120 level, then the stock market will continue to go up from here.