Critical support zone for the S&P 500 Index
The critical support zone represents a retracement of 50% from the April, 2012 high to the November, 2012 low. There is money on the sideline that will flow into equities at this level. And the shorts will cover if the S&P 500 Index continues to advance above the support zone.
A confirmed break below this support level is an ominous warning for this U.S. Index.
Against the backdrop of the Eurozone crisis with Greece and Spain in the spotlight, there are four major U.S. reports the week of May 28, 2012:
- On Tuesday, the U.S. Conference Board reports on consumer confidence in May. Economists expect a reading of 69.5.
- On Thursday, the U.S. Labour Department reports on initial jobless claims in the week ending May 26. Economists expect 370,000 new claims.
- On Friday, The U.S. Institute for Supply Management issues its manufacturing index for May. Economists expect a reading of 53.9.
- On Friday, the U.S. Labour Department issues its jobs report for May. Economists expect the unemployment rate to remain unchanged at 8.1 per cent, and non-farm payrolls to add 150,000 jobs.
Enjoy your trading week.
Reference the last chart analysis for the S&P 500 Index posted on April 16, 2012 when it was still holding above the upward sloping trendline.
Note: This technical analysis is for educational purposes so you can learn to trade online using candlestick charts. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The chart snippets are from BigCharts.com which I recommend and have used for fifteen years. The author of this article may hold long or short positions in the featured stock or index.
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