Looking not too good (2010-07-09 S&P500 analysis)

Hang Seng Index closed up 1.64%, at 20378.66. It is currently still within the fork in the week chart I posted in my last post. So let's swtich to the states. S&P 500 Index opened up at 1070.50 and is currently gaining 0.34%. Let's see what we could get from chart.



Basically the index is testing the top of the short-term green fork. However, as it has broken the long-term purple fork, I would have a general bearish expectation on it. We can see that S&P was well supported by the fibs level as well as the green fork, and had consecutive 3-day gain excluding today. So today and next Monday would be important dates as they would confirm us how it would move afterwards.

Once S&P breaks the fork, we might expect the next resistance level at 1120. But if it could not break, the index would fall to as low as before 1000.