Daily chart for S&P 500
Daily chart for NASDAQ
Dow and S&P 500 broke the 200 day moving average yesterday. Today we shall see whether there is enough momentum to hold onto the gains. For any chance of the continuation of the March 2009 rally, we will need to also break above the 50 day moving average. Now there are 2 different setups with 2 different results occurring.
Setup 1:
As seen on my daily charts above, I have a nice fibo down for all 3 indexes. For this fibo to work, all 3 indexes should not rally pass their 50% retracement levels. This would mean that this rally is a dead cat bounce and should not last more than a week.
Setup 2:
Double bottom for daily chart of S&P
This double bottom pattern had occurred in all 3 indexes and Dow and S&P had broken above the resistance level at 1105 yesterday. If S&P and Dow fails to break below the line soon, we might see S&P rally to 1170. This would be 10,730 for Dow and 2,425 for NASDAQ.
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