SP 500 Review by our firm this am

S&P 500 Chart

As seen on the chart above, the S&P 500 Index is seeing weekly MACD momentum turn up for the first
time since the whole collapse started. Additionally downside momentum as measured by the RSI
diminished as the index hit its’ low suggesting that selling pressure has waned some. Also of note volume
flows have dried up of late after surging in September and October.
As seen above the recent snap back rally ran the S&P 500 back right into a resistance zone (red lines)
between the 950 to 1,000 level. We would imagine the market is going to slosh in and around these levels until
some clarity is produced by Washington lawmakers on the economic stimulus package.
We do believe the market has priced in a ton of bad news and there is definitely a lot of liquidity on the
sidelines, however getting that liquidity into the market takes incentive and investors still aren’t convinced
it is safe to go back into the water yet as witnessed by the light volume flows.

posted by Peter Greene