Russell 2000 and S&P 500 Analysis for May 10, 2007
Path of least resistance: Up. IWM made a new high today.
Major Price Points: $83-$83.20 is a new high - watch this area closely. 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-$82.50 should be support from a couple different up trend lines from the last two weeks. IWM continues to be bought under $82 and sold over $83 - which will give first?
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 around $150.
Minor Price Points: (none)
Worth noting: The Russell 2000 lags the other indices. The SPY continues strongly above its up trendline to new highs. Today the Fed chopped the market around at 2:15. It messed up the IWM number $83 a bit, but the area is still worth watching.
General Sentiment: The trend is up and the market is strong.
