Tuesday, May 5, 2009

S&P resistance levels

Well, it seems as if a new bullish trend is developing. Today the VIX, the volatility index, closed under resistance at 33.50. The Nasdaq volatility index, the VXN, also broke resistance. The Dow Transports have remained above major resistance of 300 that it finally broke last week. This level is quickly turning into support.

So, assuming this bullish tenor holds and the results of the bank stress test are along the lines of what the Street is expecting, where do we go from here? A look at the chart of the S&P 500 below shows a minor resistance level at 935. If we can clear that, it looks like smooth sailing until major resistance at 1000.

Hope you have your buy lists ready!

Now back to my website...

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