Russell 2000 and S&P 500 Analysis for May 7, 2007
Path of least resistance: Up. IWM bounced off of its 50-day moving average with volume and is right at new highs.
Major Price Points: $83 is a new high. The $80 area is support from the 50-day moving average and the April 11th,12th and May 1st lows. A break below this would be bearish.
Minor Price Points: $82 seems to be some support as it bounced back many times from this number in the last ten days.
Path of least resistance: Up. The SPY is on fire and is at new highs.
Major Price Points: A long up trendline would break with trading below $149.
Minor Price Points: Previous resistance of the round number $150 would probably offer some support.
Worth noting: The Russell 2000 lags the other indices. The SPY continues strongly above its up trendline to new highs. I will be watching $83 closely on IWM and looking for volume.
General Sentiment: The trend is up and the market is strong.
