Russell 2000 and S&P 500 Analysis for May 22, 2007
Path of least resistance: Up, IWM touched a new high today with heavy volume.
Major Price Points: $83.25 is a new high - I am watching this number very closely. The $80.50-81 area is support from the 50-day moving average and the April 11th,12th, May 1st and 16th lows, an up trendline and previous resistance. A break below this would be bearish.
Minor Price Points: $81.50 should provide support from the 10-day chart.
Path of least resistance: Up, SPY is at new highs.
Major Price Points: SPY made another new high today. It 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 around $146.
Worth noting: Heavy volume on the SPY and IWM today. The QQQQ had weak volume, although it broke briefly above the $47 mark to a new high. The Russell 2000 - which has lagged the other indices - was strongest today with heavy volume, possibly signalling a change of leadership.
General Sentiment: The trend is up.
