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$$ $SPY $SPX Weekly Charts, Stochastics Overbought, 50% Fib Retracement

16. December 2009• SPX S&P 500, • Stock MarketPhantasmix 1 comment

Very basic analysis, sometimes works the best. I look at the $SPX index though normally trade SPY.
Click charts to enlarge

This type of overbought condition just can’t go on forever and ever. Sideways move is still not relieving overbought levels. Pattern is a bearing rising wedge.
spy_weekly1

S&P 500 all-time high was 1576; March bottom was 666.
1121 or around there is the 50% Fibonacci retracement level of that drop. S&P is having trouble going higher. Although we may not get a correction going into the holiday season, I think it will just keep going sideways at best. (Btw, what did the Fed say today? Someone Google it for me, please! <--- it's kinda funny, click the link)

spy_fibs

 


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1 comment:

  1. Phantasmix Stock Blog » Blog Archive » $SPX $SPY Weekly Chart Still Overbought (Pingback), 5. January 2010, 23:37
     

    [...] not sure overbought levels mean anything anymore! I honestly didn’t think SPX would go higher than 1,120-26 (50% retracement), at least not without a reaction/correction. MACD/price divergence [...]

     

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