Russell 2000 and S&P 500 Analysis for May 21, 2007
Path of least resistance: IWM is above its 50-day moving average, and near new highs, so the path of least resistance is up. However, it has traded sideways for the last month.
Major Price Points: $83-$83.20 is a new high. The $80-80.50 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: $81.5 has been an area of both support and resistance within the last ten days. A six-day downtrend was broken on Friday.
Path of least resistance: Up, SPY is at new highs.
Major Price Points: SPY closed the week at a new high. SPY continues to be supported below $150. A new up-trend line should give support around $151.50, and this was also previous resistance which should give support.
Minor Price Points: The 50-day moving average is way down below $146.
Worth noting: SPY closed at a new high Friday. The market continues to be bought on any dips. The Russell 2000 still lags the other indices. The QQQQ is being bought under $46 - and a breakout over $47 would be a bullish sign for the market.
General Sentiment: The trend is up.
