Technical Talk: S&P 500 action calls for caution
Print This Story
December 1st, 2009 by Prieur du Plessis, Investment Postcards from Cape Town
Twitter It! | Email This Article
The comments below were provided by Kevin Lane of Fusion IQ.
As is evident in the chart, the S&P 500 Index still remains in an uptrending wedge (green lines). However, for the last two weeks it has rallied above but then fallen back below its downtrend line (red line). While two weeks of stalling at resistance is not a major concern yet, it does at the very least raise a cautionary tone given the fact that the S&P 500 has had such a large, uninterrupted advance.
Weekly momentum indicators are losing momentum and are close to flashing some sell signals; however, until near-term support is broken near 1,026 (blue line and arrows) it is hard to become too negative.
So, to reiterate, some yellow lights are flashing but the bottom line is the trend is up and still intact and only a move below the 1,026 level would be seen as a negative.
Source: Kevin Lane, Fusion IQ, November 30, 2009.
Dr. Prieur du Plessis is an investment professional with 26 years' experience in investment research and portfolio management. More than 1,200 of his articles on investment-related topics have been published in various regular newspaper, journal and Internet columns, including his blog, Investment Postcards from Cape Town. He has also published a book, Financial Basics: Investment. Prieur is Chairman and principal shareholder of South African-based Plexus Asset Management, which he founded in 1995. The group conducts investment management, investment consulting, private equity and real estate activities in South Africa and a number of foreign countries. He also serves as Honorary Consul of Slovenia for South Africa, actively developing economic, cultural and scientific relations between Slovenia and South Africa. Prieur is 54 years old and live with his wife, television producer and presenter Isabel Verwey, and two children in Cape Town, South Africa. His leisure activities include long-distance running, traveling, reading, motor-cycling and scripophily. Read more from the author/contributor here.
Related Posts
Zweig: Investors Faith in Returns a “Fairy Tale”
Jeff Rubin: Riding Hard and Fast on Energy
WSJ: Economists cautious in 2010
WealthTrack: Where To Find Retirement Income
Tags: Advertisement, Columnist, Consuelo Mack, Financial Planner, Harold Evensky, High Risk, Income Sources, Jonathan, Jonathan Clements, Kiplinger, Low Risk, Mary Beth, Personal Finance, Retirement Income, Risk World, WealthtrackPosted in Markets |
