S&P 500 update --28th February 2011

Weekly Chart

Redrawing the upper trendline from the high made in July 2008 rather than from the high made in January 2009 as it  shows the technical reason for the pullback.The trendline from January 2009 highs shows more room for a rise upto 1400. Will put that up in case the bulls continue the ride up taking out resistance at 1343.The pullback rested exactly on the uptrendline drawn from March 2010 lows.Support on this trendline is at 1305.50 for this week.

Daily Chart

A bullish morning star formation on daily charts conforming perfectly to the characteristics of the pattern.

• The first candle is a black candlestick  within a defined downtrend (very short term downtrend in case of S&P 500).
• The second candle has a small  real body  (either black or white) that closes below the first black candle.
• The third is a large white candle that opens above the previous candle and closes at least near the middle of the first candle's  real body.
• The third candle on very high volumes makes it more bullish. 

Longs could keep a strict stop loss of the pattern's low , 1294.


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Happy Trading !!
Lakshmi Ramachandran
www.vipreetsafetrading.com