S&P 500 Index bar chart analysis

Can the S&P 500 Index hold the 200-day moving average?
Bar chart for the S&P 500 Index showing support and resistance levels.

S&P 500 Index YTD Daily Bar Chart

Near-term downtrend for the S&P 500. If the Index cannot hold the 200-day simple moving average which is near the 50% retracement zone, then the next test is 1,340 which is the 66% retracement zone. If the index cannot hold 1,340 the next support level is around the June low price zone of 1,275.

When you trade online, always assess the probabilities. A comfortable cash level is appropriate until there is technical evidence of a reversal of the near-term downtrend.

Update for November 23, 2012: S&P500 held support at the 66% retracement zone on the intermediate downtrend. Today, it is currently trading at 1,405 and will meet resistance at 1,410 and then major resistance at 1,425.  The reversal of roles is an important concept in technical analysis: what was support on the way down is now resistance on the way up. The near-term trend is up but the intermediate trend is still down.

Reference the last chart analysis for the S&P 500 Index based on the weekly chart.

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Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. 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.

© 2012 TradeOnline.ca

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