Saturday, November 22, 2008

SPY update

The light green areas represent some good strong resistance in the 83.74 area. Its going to be tough getting through there in the near term. Add to the fact that SPY reversed right at the 80.8 resistance area (blue). Also the Stochs are showing over bought in the 30 minute chart (red), but a turn here would produce a stoch on the 60 that is trending down.
News that will effect this coming week:
Obama did announce a 2 year stimulus plan to create jobs (could be good, or bad).
Existing home sales - Monday
preliminary GDP, consumer confidence, chain store sales - Tuesday
jobless claims, new home sales, consumer sentiment - Wednesday
Thanksgiving - Thursday
Half session - Friday

Trading should be light next week with the holiday. Technical indicators mostly pointing down, the market should drift down. But watchout...the drift down might accelerate into a waterfall.

I myself am looking at 70 during the first week of December.