Monday, December 8, 2008

Will S&P 500 Stock Market Rally or Continue Downtrend? Market is at Resistance.

The Market (as represented by the S&P 500) is at a decision point. Does the S&P 500 rally or continue the downtrend?

Currently, on Friday, Dec. 5, 2008, the S&P 500 is at 876, and is very near many resistance levels.
  1. Horizontal Resistance: Around 900 to 916
  2. 3 Month Downtrend Resistance: Around 879
  3. 50 Day Moving Average Resistance: 936

If Stock Market breaks through these resistance areas with good volume, there's a good chance the rally continues to at least 1000 to 1040 on S&P 500.

Otherwise, the S&P 500 could continue its downtrend.

We can also pay attention to any big gap up at the open, followed by a high volume reversal to the downside to end the day down. This could mark a failed attempt to breach resistance.

Today's S&P 500 Chart

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