One bad news and One good news (2010-09-27 S&P500 Index analysis)

A new week starts again. Good luck everyone on your trading, hope you have taken good rest in the weekend to prepare for the coming high-volatility week. There will be many important economic data which are going to affect the stock markets a lot. My view on S&P500 index is quite bullish for longer term, but in there might be some corrections in shorter-term.

Daily chart of S&P500 index:

The index made its way through the red triangle, and there is no resistance at all till 1172. However, we have to be aware of the MACD and EMA. They are both in a very high level, which almost reaches the highest level in early 2010. It might mean that the bull power might not be able to keep pushing the index upwards. Correction will probably follow.

Weekly Chart of S&P500 Index:

However, looking at the weekly chart, I would recommend everyone to buy stocks. The index broke the red triangle (which is actually that one in daily chart), and it is even clear that the next resistance would be at 1221, rather than 1172 suggested in daily chart. MACD and EMA are at level around 0, so it could probably keep going upwards.

By concluding both, in the next week there might be little corrections, we can seize the opportunity to buy stocks. Then, we can just stay and wait.