Wednesday, July 16, 2008
S&P 500 Hourly as on 16th July
Yesterday, I wrote about the US markets being oversold and the possibility of a relief recovery rally. The S&P 500 did show some good intraday recovery after touching almost 1200, But failed to sustain at higher levels and now is trading in a small range.
I am presenting Hourly chart of S&P 500. If you look at the low formed yesterday, there is a hammer and unless the hammer low is breached, it is looking stable. However, looking at the Downtrend Line and the Moving Average Sequence, the 55 Min EMA is proving to be too tough to cross. In fact, At the time of writing this post, even the 13 Min EMA is resisting upmove on S&P 500.
The MACD is also not giving a clear signal and so it is a wait and watch approach that is required for the time being.
Fundamentally, there are a lot of chaos and so many news and events are only adding to uncertainty.