Printer Friendly

eMail Article

September 04, 2009

A Time for Caution and Respect ...
by Marty Chenard

It Tas been a rally with no significant upside resistance for the S&P 500 ... until now.

In 2007, the market started its journey down in a ride where many investors where afraid to jump off of the moving train. Since March of this year, many have left their fear behind as the S&P moved up once again in a rally with Government and Fed rhetoric singing songs of "the recession is over".

That was nice ... but there was very little overhead resistance to stop the rally.

But now, for the first time since March, we are challenging a very formidable resistance level as seen on today's chart.

It is not "just any resistance" ... it is a Major level that was in existence before the market had its big plunge after last September. And now we are testing that resistance. In fact, the S&P 500 tested that resistance last week and pulled back.

The testing is technically still in play because the S&P has recently been making higher/highs and higher/lows. That is the definition of an up trend, so the failure to penetrate the resistance was not official and can't be unless a down trend begins.

Until then, the S&P has the possibility to retest this Major resistance level. Since this is a Major resistance level, it is a place where caution and respect is warranted.

** Feel free to share this page with others by using the "Send this Page to a Friend" link below

Do you have a friend or fellow investor that you think would appreciate receiving a link to this page of Today's Analysis"?

If so, simply click on the link below to quickly and easily forward an email link. It is completely private, so we won't even know if you send one.

Send This Page To a Friend

Marty Chenard
StockTiming.com
Asheville, NC 28805
Tel: 828-296-1200

StockTiming.com is dedicated to Stock Market Investors who want the best information on stock charts, stock market trends, stock market timing and technical analysis.

Be My Guest and Take Advantage of Our Free Membership ... Get a Free Membership to StockTiming.com ... Youll receive important daily messages before the market opens and direct links to todays important web pages. Information and messages that are often not posted on our website. There is no obligation or expectation on our part ... it is just our way of proving our accuracy and timing expertise to you. Please click here for your Free Membership.

Copyright © 2006-2009 Marty Chenard

Image rendition and html coding Copyright © 2000-2009 SafeHaven.com

« Opinions expressed at SafeHaven are those of the individual authors and do not necessarily represent the opinion of SafeHaven or its management. Articles are available via RSS/XML. Please visit RSSHelp for instructions. »