Sunday, September 21, 2008

Weekly Analysis of S&P500 and Nifty Futures

Nifty and S&P 500 both had a big swing this week with most of the drama on last two days of the week, courtesy US govt. Here I present my weekly analysis of S&P 500 Future and Nifty Future based on Weekly Charts.

S&P 500 Future Weekly Analysis
SnP 500 Weekly Chart 19th Sept
There was a lot of action in not only US but entire global markets the roots of which originating from US and the mishandling by the US govt. The S&P 500 Future had a 140 points swing and most of that in last two days.

Looking at the Weekly Chart of S&P 500 Future, last week ended up as what Japanese call a doji, which means indecision by traders. The thing to note here is the body of this doji (the horizontal bar) is right near the double bottom of Jan and March joining line (see pink straight line) which is a resistance now. In my last week's analysis I mentioned this to be important and this week again the price is there - near 1250. The conclusion: indecision by traders.

Nifty Future Weekly Analysis
Nifty Future Weekly Chart 19th Sept
NSE Nifty of India danced matching steps with global markets, to the tunes of music created by Bush & Co., US. Looking at the Weekly Chart of Nifty Future, this week proved to be yet another hammer. What happened was the low of last important hammer - the mid July one, was almost tested and bears could not break that. The two lows of that week's hammer and this week's hammer become very important now. The Main Downtrend Line is still intact and its resistance is near 4450 now. Next resistance comes at 34 Period EMA which is near 4680. Bulls will have upper hand only if they manage to get past these two resistance areas, the chances of which are not very good given the uncertainty in global markets.

Conclusion: I would better wait for a confirmed price action in coming week for a positional trade. However, there will be lot of short term opportunities available for traders in coming week.


  1. very nice ..and helpful harsih bhai

  2. Nice work Harry, Nice simplified presentation of charts with a quality conclusion. Gonna get your blog feed....:)


  3. Thanks a ton Shelly,
    As I already said - Our views match :)
    Thanks again buddy, will add your blogfeed as well...


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