Friday, December 12, 2008
S&P 500 US - Support Broken
The S&P 500 index of US is what I think is benchmark for US stock markets as a whole (I rarely look at Dow Jones). In my previous post about S&P 500 Future I told how precariously it was placed and any was expecting some good move either side (though my bet was on short side). The reason was it was facing big trend line resistance and yesterday the resistance proved to be bigger than bulls were thinking.
Before today's markets open, S&P 500 future was down sharply below 840 but has recovered to 851 in less than five minutes. Yesterday it broke below 840 and in the process short term uptrend line got broken. In fact, this must be a real bad news for bulls. This broken uptrend line should act as another resistance now, however, given the recent volatility, I would not act in haste.
If we consider this formation as a triangle kind of thing, then the break of support may prove to be a continuation of primary bear trend.