Saturday, December 26, 2009

Standard & Poor's 500 Index Trend Analysis



Standard & Poor's 500 Index Trend Analysis

It was the first positive week for the S&P 500 (^GSPC). During the week, the ^GSPC gained 24.01 points, or 2.18%, and closed at 1126.48 on Thursday, December 24, 2009. Weekly volume was -40% below average.

The Christmas rally has pushed the stocks ahead and the trend following indicators have turned bullish. The daily MACD line has moved above its signal line. The price has closed on Friday above the upper Bollinger Band. Almost 20% of S&P 500 members are overbought. Daily and weekly oscillators are overbought and strongly overbought. The bearish divergence is everywhere. It indicates that the rally is exhausted and a trend reversal is expected soon.

Standard & Poor's 500
Technical Stock Market Timing System
Weekly Technical Indicators: Weekly Lane's Stochastic is overbought while Williams' Percentage Range is strongly overbought. Weekly MACD has bearish divergence. The divergence between price and indicator is considering one of the most important buy/sell stocks trading signal. Oscillators are designed to signal a possible trend reversal. The weekly MACD line is above its signal line since March 13, 2009.

Daily Technical Indicators: Daily Williams' Percentage Range and Lane's Stochastic are overbought. Daily Lane's Stochastic and MACD have bearish divergence. During the last week, daily MACD line has moved above its signal line. Such crossover is considered a bullish signal.

The price has closed on Friday above the upper Bollinger Band. The distance between the Bollinger Bands is falling and it was 3.3% on Friday. It is 33.55% lower then two years average. It indicates the period of low volatility of the stock price.
Standard & Poor's 500 - Bollinger Bands
Technical Stock Market Timing System
Presented by www.thegreedytrader.com Research Group.

Friday, December 25, 2009

Weekly Stock Market Overview - 12/24/2009
It was an up week for the major markets. For the week the Dow Jones Industrial Average gained 191.21 points or 1.85%. The Standard & Poor's 500 Index gained 24.01 points or 2.18%, while the Nasdaq Composite gained 74.00 points or 3.35%.
The Materials sector was the strongest sector (4.44%) last week followed by the Technology sector (3.05%). The Utilities sector was the worst performing sector (0.41%) of the week followed by the Health Care sector (1.06%).
The Technology sector is the most overvalued sector followed by Basic Materials, while Information Technlgy Svcs, Diversified Computer Sys, and Semiconductr-Memory Chips are among the most overvalued industries. The Utilities sector is the most oversold sector followed by Healthcare, while hospitals, Biotechnology, and Medical Instruments/Supls are among the most oversold industries.
Weekly S&P 500 Winners
Gains/Loses(%) Symbol Company Sector
24.78% MBI MBIA Inc. Financials
20.14% SNDK SanDisk Corp. Information Technology
17.70% JBL Jabil Circuit Information Technology
Weekly S&P 500 Loosers
Gains/Loses(%) Symbol Company Sector
-10.73% CTAS Cintas Corporation Industrials
-6.45% MOT Motorola Inc. Information Technology
-5.64% DYN Dynegy Inc. (New) Class A Utilities