Wednesday, December 31, 2008

S&P 500 Index Approaching Breakout Level

In spite of the weak economic news, the S&P 500 Index has returned 20% since the November 20th low of 752. Today the index closed at 903.25 which is above its 50-day moving average of 887. A confirming uptrend can be achieved if the index breaks above 916.

From a technical perspective, a concerning aspect of the increase is the fact the uptrend has been occurring on increasingly lower volume. With the start of the new year just around the corner, increasing up volume and taking out the 916 level will be important technical factors to follow for the S&P 500 Index.

(click to enlarge)

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