Sector Investing

[ReturntoSender]

Amateur Investors Weekend Stock Market Analysis (5/1/10)

http://www.amateur-investor.net/Weekend_Market_Analysis_May_1_10.htm

The main thing to watch next week will be if the bearish looking Head and Shoulders Top pattern follows through or not to the downside. The Neckline is sloping downward towards the 1180 level so that will be a key level to watch early in the week.



Furthermore also notice the 23.6% Retrace (red line) from the early February low to the April high resides near 1180 as well. If the S&P 500 drops below the 1180 support level then the next area of support would be in the 1170 to 1153 range. 1170 is at the 50 Day EMA (green line) while 1153 is the 38.2% Retrace (blue line) from the early February low to the April high. In addition notice 1153 is close to the previous high made in mid January (point A) and also is near the longer term upward trend line (black line) connecting the March 2009 low with the early February 2010 low.