Failure at 1200 – Market Analysis for 22/04/2010 by Singaporeseeds

Weekly chart of S&P 500


Daily chart of S&P 500


On daily charts, S&P 500 had failed to rally above resistance at 1210 over the past 2 days. I will be keeping a close eye at this level. The bearish reversal signal is still intact and although there may be intraday breaches, but I do not expect the S&P rally above 1210 for at least the next few weeks.

I believe the S&P will tank below its 20 day moving average (the blue line) in the next few days. The low volume rally off the February 2010 lows had pushed the S&P way above its 50 day moving average and a short term correction to the 50 day moving average may be possible within the next 2 weeks.


Crude Oil

Daily chart of crude


Crude bounced off support at 82.50 on Monday and constipated around the 84 level. The downtrend for crude is still intact and we should be seeing some weakness in the next few days down to support at 79.50.