Russell 2000 and S&P 500 Analysis for May 3, 2007
Path of least resistance: Up. IWM bounced off of its 50-day moving average with volume and continued up strongly today.
Major Price Points: The $80-$80.25 area is support from the 50-day moving average and the April 11th,12th and May 1st lows, as well as a new up trend line. A break below this would be bearish. $83 is a new high.
Minor Price Points: (none)
Path of least resistance: Up. The SPY is on fire and is at new highs.
Major Price Points: The $150 area is new high territory. A long up trendline would break with trading below $148.
Minor Price Points: (none)
Worth noting: The Russell 2000 lags the other indices. It will be interesting to see which line breaks first for the SPY, as they are converging to a point. I do not plan to trade the ES unless it is at one of these lines. The move up today was on lighter volume.
General Sentiment: The trend is up and the market is strong.
