S&P 500 update 31st May 2011

Weekly Chart

Daily Chart

The fall since the high of 1370 has been very gradual. Momentum on the downside seems to be missing. This is obvious by the dojis made in the last three weeks. The rise from 1294 to 1371  took just 9 days has not been  retraced completely even after 20days. Last week's  candle resembles a hammer which will have bullish implications with confirmation from next week's candle.Weekly stochastic seems to support the downmove  whereas the daily stochastic which is now in the oversold region signals the rally from 1312 may continue. The close too was once again above the 50 dema.

Key level to cross for the upmove is 1335. Support  is at  1310-1305.




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Happy Trading !!
Lakshmi Ramachandran
www.vipreetsafetrading.com