I charted the past six and a half months for the S&P 500 ($SPX) after the markets closed on Friday, January 22, 2010 when it finished the week at $1,091.76.
3 thoughts on “SPX Chart – Technicals Weighing Heavy”
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Investing in Stocks Through Options
Great post… but what is more important to me than the technicals now is the emotionals – how will people react? It is a key driver now in the days ahead.
This has been a difficult week for the markets. I hope this is just a pullback based on a couple of macro-political issues as the fundamentals are still good.
@ Doc – Thanks, I think the technicals are a picture of the emotional reactions of investors/traders. That’s what makes trend lines work to me. Each line represents the growing emotional acceptance or denial of a stock’s movement.
@ Steve – I agree macro-political issues played a part in kicking off this dip, but the fundamentals are mixed. It depends what data you look at and then it always comes back to expectations of what you think will happen in the future after the data is announced. Is the theory that unemployment is a lagging indicator still valid with U6 being so bad and the prospects for increased employment slim in the near-term?