Russell 2000 and S&P 500 Analysis for May 2, 2007
Wednesday, May 2nd, 2007After watching the Russell 2000 bounce with the S&P when the S&P 500 bounced off of its trendline, I have decided to also include daily analysis of the S&P.
Path of least resistance: Up. IWM bounced off of its 50-day moving average with volume.
Major Price Points: The $80 area is support from the 50-day moving average and the April 11th,12th and May 1st lows. A break below this would be bearish.
Minor Price Points: Trading over $81.75 would show strength by breaking a 4-day down trend. $83 is a new high.
Path of least resistance: Up. The SPY is on fire and is at new highs.
Major Price Points: The $150 area is new high territory. A long up trendline would break with trading below $147.50.
Minor Price Points: (none)
Worth noting: The Russell 2000 is the dog of the indices, so if the market is heading down then the ER2 should have the better trades. SPY is strong, so on up days it may be a better play. Both of these indices bounced off of support yesterday with high volume, which is bullish. I am expecting a follow-through of this bullish move for today.
General Sentiment: The trend is up and the market is strong.
