US market closed higher on Wednesday with the S&P500 index ending at 899 points. S&P500 rebounded from a low of 741 (on 21 Nov 08) to a high of 918 (on 8 Dec 08), a 23% move in a span of 10 trading days.
The index is now about 20 points away from its 50 day moving average. If the index is not able to penetrate its 50 day moving average convincingly, then the downtrend will resume. Resistance is at 920 and 1000 points respectively.
The slope of the 50 day and 200 day moving average is still sloping downwards. If the slope of the 50 day moving average is able to turn up and the index is able to move above its moving average, then the chances of having a sustain recovery is stronger.
Let’s see how the index behaves in the next few weeks.
The index is now about 20 points away from its 50 day moving average. If the index is not able to penetrate its 50 day moving average convincingly, then the downtrend will resume. Resistance is at 920 and 1000 points respectively.
The slope of the 50 day and 200 day moving average is still sloping downwards. If the slope of the 50 day moving average is able to turn up and the index is able to move above its moving average, then the chances of having a sustain recovery is stronger.
Let’s see how the index behaves in the next few weeks.
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