Saturday, February 25, 2012

S&P 500 - Triple Screen Analysis - End of Week: 24 Feb 2012 - Almost at last year's High

Recap: We analyzed the S&P with End of Week charts until last week. Now we shall do the full three screens - Month, Week and Day as we do for the Nifty. Last week (see post here) we saw the SP500 eying last year's high and we find as of now, that its still a mite below it.

S&P 500 - End of Month Chart - 24 Feb  2012
S&P 500 End of Month Chart (EOM) : The chart above is an update of the chart we studied end Jan'12 (post here) and learned that it was 'Advantage Bulls'. As one can see highlighted above, the green price line has moved well above the 'Blue Middle Line' of our Monthly channel set. 

S&P 500 - End of Week Chart - 24 Feb  2012
S&P 500 End of Week Chart (EOW) : For a closer look, we zoom in with the EOW charts. We see the '3 white lines' of the Weekly channel. As we observed for the past few weeks, the SP500 is on a steep rate of climb and is sticking to below the week's middle channel line. Last year's High is yet to be taken out.

S&P 500 - End of Day Chart - 24 Feb  2012
S&P 500 End of Day Chart (EOD) : Here you can see the 'red, blue and green' lines of the Month chart. Slashing across it you see the 'three white lines' of the Weekly chart. Hugging below the 'white mid-line' of the Weekly chart are our three 'Yellow' Day chart lines. The SP 500 has stayed above the Middle line of these 3 Day Channel lines. Its also above all the short term MAs viz. 5 EMA, 13 SMA and 10 EMA.

Looking Forward: The Bull option is to break above the Mid-line of the Week channel and the Bear option is to go below the Mid-line of the Daily channel. Current momentum favors the Bull. Divergences (on technical indicators, EOM and EOD) favor the Bear. Closing above last year's high is the next milestone.