Russell 2000 and S&P 500 Analysis for May 31, 2007
Path of least resistance: Up. IWM is making new all-time highs.
Major Price Points: IWM broke above resistance at around $83.30 today. The $80.50 area is support from the April 11th,12th, May 1st and 16th lows. $81.50 is support from an up trendline and the 50-day moving average. A break below this would be bearish.
Minor Price Points: A 3-day trendline should provide support at around $83. Over $84 would be a new intraday all-time high. A 10+ day trendline should provide support at around $82.
Path of least resistance: Up, SPY is at new highs.
Major Price Points: SPY broke through resistance to a new high today. It is supported below $150. A 3-month uptrend line was broken last week with volume, which is a sign of weakness - but it didn’t last long as SPY made a new high with volume today.
Minor Price Points: The 50-day moving average is way down around $148. A 3 day uptrend line should provide support around $151.75.
Worth noting: SPY broke its 3-month uptrend line with volume last week, but still won’t trade below its 20-day moving average.
General Sentiment: The market is unstoppable.
