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 24-Jan-2012

The market is edging itself slowly higher with low volume. It is looking very lethargic. There was two small downwards spike in the last two days which the market corrected. Is it the beginning of a 1-2-i-ii downwards structure? There needs to be more evidence to confirm that. The next session would likely make the path of analysis more clearer.

The 200 D MA is at 1257 and is flattening out indicating that  a base is being formed. The S&P could correct to that level and move upwards. That would likely be the final leg of this upwards move.

S&P 500 EOD Elliott Wave Chart 24 Jan 2012

S&P 500 Fibonacci Confluence

The Fibonacci band at 1282 – 1296 was broken which I did not expect. The next level is at 1235.

S&P 500 Daily Fibonacci Chart 24 Jan 2012

S&P 500 Volume

The volume is very light and is looking very dangerous for the bulls.

S&P 500 Daily Volume Chart 24 Jan 2012

S&P 500 EOD Review 12 Jan 2012

The upwards moves are getting very weak. I think that the final move up is in place and the market is likely to head lower from here to at least 1250. The MACD is still diverging downwards with every upwards move in the market. Note that it has stayed above 200D MA for more than a week now. The downwards more is likely to test the 200D MA. Unlikely to break it though.

S&P 500 EOD Elliott Wave Chart 12 Jan 2012

S&P 500 Fibonacci Confluence

The S&P 500 is trying to breakaway from the top of the Fibonacci band at 1295. It is unlikely to succeed and I expect it to come down to test the Fibonacci level at 1255 at minimum.

S&P 500 Daily Fibonacci Chart 12 Jan 2012

S&P 500 Volume

The volume is still very light which is very unhealthy. This indicates that either most investors are already in the market or are waiting on the sidelines for a clear direction. But with the market inching higher, it is quite surprising that volume is not picking up. That is not looking good for the bulls.

S&P 500 Daily Volume Chart 12 Jan 2012