Finishing The Week With A Bang

What a week! The SP500 broke through the trading range on Monday, then it spend the next three trading sessions pulling back to test the breakout. On Friday, the market opened with a bang and the SP500 immediately went back above the upper level of the trading range. It spent most of Friday's trading session attempting to break above Tuesday's intraday high of 1148. As the third quarter coming to an end, the window dressing activities will most likely push the SP500 to the 1170 level.

Here is a 30 minutes intraday chart highlight this week's SP500 moves:



and here is the daily SP500 chart showing the next target level:

Finally!

After being trapped in a trading range between 1040-1130 for months, the SP500 finally broke above the trading range and closed at 1142.71 today. Joining the break are the Nasdaq 100 & the DJIA. Still lagging behind are the Russell 2000 and the DJT. Today's move will likely continue with further move toward the next target level (see charts.)

SP500:



DJIA:



Nasdaq 100:



DJT:



Russell 2000:

Getting Close

The SP500 is getting close to the 1130 level after holding above the downward trendline. Today, the Nasdaq 100 intraday high of 1942.34 exceeded the June 21, 2010 intraday high of 1939.77 and closed near the 1940 mark at 1936.60.

After today's market actions, it appears the SP500 will likely assault and move above the 1130 level. How sustainable this rally will be is depended on how quickly the Russell 2000 catches up with the SP500 & the Nasdaq 100. If the Russell 2000 continue to lag, then the extend of this rally could be limited. In the meantime, the momentum is on the up side and I will be selective long.

Here are the charts. Click on them to get a larger image and to read the embedded comments.

SP500:



DJIA:



Nasdaq 100:



Russell 2000:

Upward Bound

It looks like the market is making a move toward the upper level of the trading range. The SP500 and the Nasdaq 100 downward trendline that I have mentioned in my last post are being violated. If these two indices can hold above the trendline, then the upper range of their respective trading range will likely be the next target, i.e. 1130 for the SP500, 1940 for the Nasdaq 100.

SP500:



Nasdaq 100:

Still In The Range

The market has been choppy and it has not changed much. It is still trapped in a trading range. The SP500 is still in the 1040-1130 trading range. Until it breaks out of this range, the market will continue to be choppy and favor the short term traders.

Here is the latest SP500 chart showing a newly formed bearish trendline. This trendline along with the 1040 support trendline is forming a descending wedge pattern. This descending wedge added importance to the 1040 support level. If the SP500 goes below 1040, the bears will likely hit the market hard on this break.

SP500: