S&P 500 EOD Review 10 Jan 2012

The S&P made another intermediate high  again on low volume. The market is looking very toppish and a correction is very likely with a target of 1250 region. There are a few trendlines that are converging at the 1300 region and I expect this to provide a strong resistance.

MACD is looking up and if it breaks the line (indicated by green arrow), the market could head much higher.

Note that the market is heading higher away from the 200D MA which could be interpreted as being bullish. But without confirmation of volume makes it weak.

S&P 500 EOD Elliott Wave Chart 10 Jan 2012

S&P 500 Fibonacci Confluence

The Fibonacci band at 1282 – 1295 was pierced and the market is sitting right in the middle of the band. But the market could not push itself to break above that band.

S&P 500 Daily Fibonacci Chart 10 Jan 2012

S&P 500 Volume

The volume is still light and this upwards move is not looking healthy.

S&P 500 Daily Volume Chart 10 Jan 2012

S&P 500 EOD Review 9 Jan 2012

The S&P 500 is still in a horizontal move. It is looking like a corrective move which tells me that further upside is in store. But before any upwards move happens, it needs to correct a bit more deeper and I think it is going to test the top red line (amber arrow) before heading higher.

The MACD is diverging and that is a good indication of an imminent correction. Note that this is the 5th consecutive close above the 200D MA (albeit low volume) which is quite bullish.

S&P 500 EOD Elliott Wave Chart 9 Jan 2012

S&P Fibonacci Confluence

The S&P 500 has been trying to break the Fibonacci band at 1282 – 1295 but it is holding strong. I expect it to hold for the time being.

S&P 500 Daily Fibonacci Chart 9 Jan 2012

S&P Volume

The volume is still light and there is a lot of indecision in the market. I think that the S&P will likely retreat to lower levels slowly before embarking on a surge up. I am biased towards the bullish side as the signs of a sell down is waning fast.

S&P 500 Daily Volume Chart 9 Jan 2012

S&P 500 EOD Review 5 Jan 2012

The expected stab came in and just missed topping the previous high by a whisker. As I said yesterday, the market is looking toppish and a downwards move is expected. If the red support line (marked by the amber arrow) holds, we could see the S&P 500 heading higher to 1400 or even 1500 region. If it breaks, the S&P 500 is likely to head lower to the next red support line. If that breaks as well, it would confirm the downtrend.

MACD is diverging indicating that a correction is quite imminent.

S&P 500 EOD Elliott Wave Chart 5 Jan 2012

S&P 500 Fibonacci Confluence

The S&P 500 took a stab at the Fibonacci Confluence band and got turned away.

S&P 500 Daily Fibonacci Chart 5 Jan 2012

S&P 500 Volume

The volume is still light and the market seems like is hanging in the clouds without much support. But it’s important to note that it is above the 200D MA which is very good for the bulls. But, it would need to remain above the 200D MA for a few more days in order to be confirmed as a bullish scenario.

S&P 500 Daily Volume Chart 5 Jan 2012