Russell 2000 and S&P 500 Analysis for May 23, 2007
Path of least resistance: Up, IWM made a new all-time high today.
Major Price Points: $83.25 was resistance and should provide support if IWM can stay above it. The $80.50 area is support from the April 11th,12th, May 1st and 16th lows. $81 is support from an up trendline and the 50-day moving average. A break below this would be bearish.
Minor Price Points: A steep 3-day up trend would break below $83.25. $81.50 should provide support from the 10-day chart.
Path of least resistance: Up, SPY is at new highs.
Major Price Points: SPY continues to be supported below $150. A new up-trend line should give support around the $152-152.50 area.
Minor Price Points: The 50-day moving average is way down around $146.
Worth noting: Suprisingly (to me anyway) low volume on IWM today as it made a new all-time high, especially after the extremely large volume yesterday. I was disappointed with its move, as the $83.25 area was a nice line on the chart to break. The Russell 2000 - which has lagged the other indices - is strongest lately, possibly signalling a change of leadership.
General Sentiment: The trend is up.
