Monday, April 20, 2009

S&P 500 Future Analysis on 20 April 2009

Dear Readers,

For this week starting today I have following to say about S&P 500 Future based on Daily Chart and Weekly Chart -
  • In my last post I put resistance at 876 and it touched 871! The resistance worked and it fell from there. Now, for today we need to see how far it comes down.
  • The short term trend is still positive and 929 remains key level to watch out for.
  • Resistance - 876, 917, 929
  • Support - 845, 823, 804, 774
In all the possibility this is a bear market rally and the main trend remains bearish, however, on Daily Chart 34 EMA has crossed over 55 EMA which is a sign of this trend (up) to hold for medium term. But, you know counter trends are risky, so always keep your positions hedged (for longs, buying VIX is a good idea).


  1. I'm very interested to know what your thoughts are regarding the financial bank bailout. Why do car manufacturers get millions in bailout money, and then people like me with my tiny one-man business have to foot the bill?

    Then we have the case of the missing $7.5 trillion which the US (wall street) government are not declaring.

    Why isn't the bailout being audited, why isn't there any transparancy to where the money is going.

    Oh that's right, it's because the whole f^%$%^ing system stinks. It's corrupt, and the biggest terrorists are the governments themselves.

    What are your thoughts Harish?


  2. Very true Sol. If you check my past posts, I have made it clear my views about politicians. Govt and politicians are the root cause of all the troubles and what an irony people think they (politicians) can solve problems!
    These days Americans think Obama can "correct" the problems, British think Brown can do that and so do others in other countries. But my question is where is the problem? The economy could not sustain this unwanted pressure of fiat money generated bubbles and so it is "correcting" by itself. Let the wrongdoers pay for their mistakes. Nobody was crying foul when SEC whose job was to regulate financial firms actually allowed big five to leverage 1:30 ! This is how govt and govt agencies work!
    Why do they need correction by Obamas and Browns? Let Mr. Market do its work. Let th forces of Creative Destruction do their work. This is like waking up after global warming has started its destruction. Today we want all the luxury and tomorrow we will ask and hope govt to do "something" to help us. Nonsense. But this is how humans behave.

    Your valuable comments are very important friend and pls keep visiting and commenting.

  3. Good information! I will have to check it out further. Thank you.


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