Feb 24th, 2010: SP-500 Positioned For a Break-Out?
Posted by pugsma on February 24, 2010
4:40 pm EST: Life is good for the bulls. SP-500 held key support at the 13-day (1095.57) and 34-day (1098.50) EMA, printed an impressive reversal candle on the daily chart, and closed over the 1105 level. The 50-day SMA (1108.91) is within a simple gap up open tomorrow. Thus, a short covering rally for wave iii-(5)-1-[5]-P1 has a potential to close out the month of Feb in a very bullish fashion. The two most likely primary counts (white and turquoise) are battling it out to see who gets to a new high over 1150 first.
And did you see that VIX take a dive today? Down -5.2% to the 20.27 and almost a teenager again.
Oh yeah, Uncle Ben signaled today that the Fed is going to keep interest rates “exceptionally low for a long time period to come”. Banks are rallying, with XLF up another 1.5% today. Easy money for the banks, means easy money for the stock market bulls. Low volume climbing the “wall of worry” to 1250 by the mid-term elections in November 2010.
15-min Chart (EOD):
60-min Chart (EOD):
11:45am EST: With the 13-day EMA at 1095 holding as support this morning, the SP-500 is sporting a solid reversal candle. A break-out could be ahead if the 50-day SMA and key resistance at 1109/10 is busted through later today or tomorrow. If the SP-500 finishes today in the 1105 area, they will likely gap it up and over the 1109/10 resistance tomorrow. On the downside, it’s about holding above 1095 today.
SP-500 Daily Candles (mid-day):
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