Russell 2000 and S&P 500 Analysis for May 30, 2007
Path of least resistance: Up, although IWM has traded sideways for the last month and a half.
Major Price Points: IWM is having trouble staying above resistance at around $83.30. The $80.50 area is support from the April 11th,12th, May 1st and 16th lows. $81.5 is support from an up trendline and the 50-day moving average. A break below this would be bearish.
Minor Price Points: A 10-day trendline should provide support at $82.
Path of least resistance: Up, SPY is at new highs.
Major Price Points: SPY is supported below $150 and resisted above $153. A 3-month uptrend line was broken last week with volume, which is a sign of weakness.
Minor Price Points: The 50-day moving average is way down around $147.
Worth noting: SPY broke its 3-month uptrend line with volume last week, but still remains above its 20-day moving average.
General Sentiment: The trend is up.
