Russell 2000 and S&P 500 Analysis for June 5, 2007
Path of least resistance: Up. IWM is making new all-time highs.
Major Price Points: The $80.50 area is support from the April 11th,12th, May 1st and 16th lows. $82 is support from an up trendline and the 50-day moving average. A break below this would be bearish.
Minor Price Points: A 7-day trendline should provide support at around $84.75, but IWM is gapping below this number this morning. Over $85 would be a new all-time high.
Path of least resistance: Up, SPY is at new highs.
Major Price Points: SPY is supported below $150. A 3-month uptrend line was broken recently with volume, which is a sign of weakness - but it didn’t last long as SPY bounced right back to new highs.
Minor Price Points: A new trendline should offer support around $153. The 50-day moving average is way down around $148. A 7 day uptrend line should provide support around $152.5.
Worth noting: SPY broke its 3-month uptrend line with volume recently, but still won’t trade below its 20-day moving average.
General Sentiment: The market is strong.
