S&P 500 EOD Review 26 Jan 2012

The S&P 500 corrected the impulsive move made on 25 Jan 2012. It retraced 78.6% of the move. The move up on 25 Jan is clearly an impulsive move. The correction in the last session looks like a 5-3-5 correction. This could indicate two things. The S&P 500 could head higher as impulsive move followed by corrective move will likely be followed by another impulsive move. Or, the move down in the last session is not complete yet, and further downside is possible.

The momentum is waning with every upwards surge as the MACD on the hourly is still negative. The MACD on the daily is getting flat as well. I am still expecting a correction to kick in soon.

S&P 500 EOD Elliott Wave Chart 26 Jan 2012

S&P 500 Fibonacci Confluence

The S&P 500 almost hit the next Fibonacci band at 1337 but retreated after hitting 1333.

S&P 500 Daily Fibonacci Chart 26 Jan 2012

S&P 500 Volume

The volume is still light but relatively higher on the way down. If the selling volume increases, we can expect the market to turn down.

S&P 500 Daily Volume Chart 26 Jan 2012

S&P 500 EOD Review 25 Jan 2012

The S&P 500 took another upwards step and closed at 1325. The recent moves have all been impulsive up and corrective down with the market slowly edging higher albeit low volume. I have been anticipating a market turn downwards for a correction before moving higher into 1400 or even 1500 but that correction is getting delayed with each upward move. The S&P 500 has also broken through a few support area and is actually starting to look strong. But the volume is low and that is telling.

It has also stayed above the 200D MA for almost a month now and the 200D MA is on the verge of turning up. The daily MACD is up but there is clear divergence between the top of 27 Oct 2011.

S&P 500 EOD Elliott Wave Chart 25 Jan 2012

S&P 500 Fibonacci Confluence

The next band is at 1337 – 1364 which looks like where the market is heading to next.

S&P 500 Daily Fibonacci Chart 25 Jan 2012

S&P 500 Volume

The volume is still light. Market turns occur at either very low volume or very high volume. But there is not sign of such occurrence so far.

S&P 500 Daily Volume Chart 25 Jan 2012

S&P 500 EOD Review 11 Jan 2012

Another lacklustre day with low volume and no clear direction. Market internals are weakening, the MACD is clearly heading down with every upwards move in the market. I’m maintaining a correction to 1250 region or even lower.

S&P 500 EOD Elliott Wave Chart 11 Jan 2012

S&P 500 Fibonacci Confluence

The S&P 500 is still stuck in the middle of the confluence band. There could be one more stab to touch 1300 before heading downwards.

S&P 500 Daily Fibonacci Chart 11 Jan 2012

S&P 500 Volume

The volume is still light. Market is undecided which way it wants to go.

S&P 500 Daily Volume Chart 11 Jan 2012