For June 11, 2010

(Individual Chart Analysis)

This is a no-frills analysis.  It is not designed to look good, it is designed to be effective. 

Summary of the Analysis for the S&P 500

(This takes into account the near term, mid term, and longer term charts)

our combined analysis for Friday tells us to expect the market to begin the day with a bias to increase.  Overall, our combined analysis is bullish.  The longer-term charts are bullish, midterm support levels have held, and the near-term charts shows is that breakouts have already begun to occur.  Combined, there is a bullish read stemming from our analysis for Friday.  If the market begins the day with a bias to increase and if it holds above initial support levels, aggressive market increases can follow.  At least, midterm neutral resistance levels can be tested.  If this occurs it should be considered a test of inflection, but midterm resistance is nicely higher than the close of the market on Thursday, so such a move would also be construed as relatively bullish.  Treat initial support as inflection for Friday's trading session, and use it to guide your decisions accordingly.  If 1073 remains in tact as support expect the market to increase to 1105.  However, if 1073 breaks lower, expect 1051 instead.

Near Term Chart Analysis for the S&P 500

Our combined near-term analysis tells us the market is in a near-term neutral trading channel.  In addition, it tells us that the market has recently broken above the neutral intra-channel resistance line that had been in tact.  This former level of resistance has since been converted into support and it is inflection.  If recently converted near term neutral intra-channel support remains in tact expect the market to begin the day with a bias to increase on Friday and expect a test of near term neutral resistance to follow.

Near Term Support for the S&P 500 exists at 1073 then 1053

Near Term Resistance for the SP 500 exists at 1103

Mid Term Chart Analysis for the S&P 500

Our combined midterm analysis tells us that the neutral mid term channel that we have been watching is likely to solidify soon.  Specifically, midterm neutral resistance is likely to be tested soon, and that will confirm the channel again.  According to our combined midterm analysis, support levels have held thus far.  If those support levels continue to hold, and because the market has already begun to pull away, expect a test of resistance to follow.  Appropriately, our combined midterm analysis tells us to expect a test of midterm neutral resistance levels soon.  If/when that happens, treat resistance as inflection.

Mid Term Support for the SP 500 exists at 1048

Mid Term Resistance for the SP 500 exists at 1106 then 1172

Longer Term Chart Analysis for the S&P 500

Our combined longer term analysis tells us that the Market is threatening to break longer term neutral support.  This, when combined with the reversal confirmation we pinpointed in late April, suggests that aggressive breaks are likely at some point.  Treat support as inflection, recognize that some markets have started to break below longer term neutral support already, and prepare for additional declines at some point as a result.  A slight bounce back is not uncommon, but the breach that is obvious from some of the Markets we follow suggests that an eventual turn lower should come.  This sets the stage for our longer term plans.

Long Term Support for the SP 500 exists at 1066

Long Term Resistance for the SP exists at 1220