Tuesday, October 20, 2009

S&P 500 daily chart (Nov 08 to Oct 09)

The above S&P 500 shows that we might be hitting on the resistance line (blue line). The index keeps increasing from Sep 09 till now, but the volume keeps decreasing. So is it dued for a correction soon?

Let us looks at the weekly chart, S&P 500 is going to hit the major resistance line (blue straight line). You can see that the index is increasing with volume decreasing(see red line).

With these two charts, do you think the index will still go up without any major correction? I remembered what Sun Tzu say, if the odd of winning is low, don't bother to fight. So do you want to risk by buying up now?

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