Market Analysis for Mar 17th, 2005

For today's Mid-Day Minute, Mike writes: As we approach the end of this week, let's have a look at the weekly chart of the SPX, which is heading for its second consecutive down-week. Notice that the decline this week has sliced below the nearest trendline- broken around the 1200 level, and which triggers a new downside target into the 1160 area. Notice also, that weekly RSI registered TWO non-confirm- ations of new price highs- at the Jan. peak of 1217.90, and at the March peak of 1229.11. One weekly non-confirmation would be enough of a warning to suspect some turbulent downside action is ahead-- BUT TWO of them really must be taken VERY seriously-- especially now that the RSI also is pointed straight DOWN. Given the negative juxtaposition of price with RSI on a weekly basis, an 1160 target may be too conservative. Perhaps we should begin looking for 1140- in the vicinity of the 1 year MA. MJP 03/16/05 1:30 PM ET (1191.17)

For more of Mike Paulenoff, sign up for a FREE 30-Day Trial to his E-Mini/Index Futures diary. Or try his QQQ Trading Diary.


  Matched
x
  • In our live, interactive Trading Room, we identify trading opportunities in ...
  • Equity Index Futures
  • Index & Sector ETFs
  • Individual Stocks
  • Precious Metals
  • Energy
  • Forex
  • Treasuries
  • International Markets
  • And Much More
Join MPTrader Now!
Veteran Wall Street analyst and financial author, Mike provides detailed and timely analysis and trade set-ups on a range of markets. Read more...

Have Mike's “Out Front” morning analysis delivered FREE to your email inbox twice weekly!