Market news, views and information from a Wall Street veteran
Friday, October 20, 2006
S&P500 Daily Analysis for Oct 20th
1st time frame UPtrend remains intact.
Borderline outside day denotes indecision within this market.
When the market closed the bulls were in control and slightly keener than the bears. Once again, for the fourth day in a row, the bears lost any commitment they had earlier in the day with the bulls showing some moderate level of commitment.
Triple MAs remain BULLISH.
MACD histogram remains ST bearish.
ST volatility has tested the long term significant lowly support area. It looks as though volatility will, once again, bounce off this area. Look for ST trending action to begin very soon - most likely to the upside.
Volume remained relatively flat within the larger congestion area.
The previous resistance area (marked in yellow on the chart) continues to act as support. It remains a significant area which should be watched closely if the market attempts to break to the downside.
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