22/02/2014

Comments SP500 Friday close

The monthly up trend is very strong and next Friday comes the monthly close. If the close comes in at 847 there will be a perfect double top like that FTSE has got. The all time high is 851 which was set last month. If this top holds the last week of February we have a three month top anyway which could be the end of the uptrend. However there must be a close below the rising 8 MA for a trend change down. I do not believe a new all time high will come looking at the rest of the charts.

The weekly chart shows a clear sideways trend with the 8 MA moving also going sideways.

The daily trend gives a strong impression of a double top. The 8 MA is still up but if Monday and Tuesday does not make a new all time high the 8 MA has lost its last power to go higher and will turn sideways.

The 2 hr trend dropped the last hour in the US to close below the rising 21 MA which is the first sign of weakness. Monday will start with the trend down.

All in all it looks to me as if there is a strong possibility of a big double top in SP500 which will break on downside within the next 10 trading days.




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