Index Watch for October 19, 2009:
S&P 500 Index ($SPX) -- On the Daily Chart, the next area of resistance will be in the 1120 - 1125 area. The first area of support to be aware of is 1060, the lower trendline in the wedge. I think we're going to test the lower part of the wedge (at a minimum) or the 50 MA until we make a run for the 1120 - 1125 area. Even though I think we're going to be much higher in 10 months, I think that will mark an intermediate term top and the correction everyone has expected will occur. This Daily Chart of the index should be kept overhead for those who like to short the market. Until the 8 MA goes under the 50 MA, it's going to be difficult to stay the course with anything more than a day or three. Once they do cross, I'll be more aggressive going short on rallies to resistance. As my Bull / Bear chart illustrates, we are clearly in a Bull Market.
Dow Industrials ($INDU) -- The intermediate term target on the Daily Chart is at the upper trendline in the Rising Wedge that began in March 2009, currently at 10,200. A move to the 50 MA and possibly the lower trendline could occur before we make a run for it.
Bank Index ($BKX) -- The Weekly Chart still has clear resistance at 50.00 with support at 44.00.
Dow Transports ($TRAN) -- A run to the 4300 - 4350 area on the Weekly Chart is likely before a meaningful correction occurs.
Crude Oil Index ($WTIC) -- Crude has broken out on the Weekly Chart and measures to $88.00. Initial support is located at $74.00.
Oil Services Index ($OSX) -- A move to 220 - 230 is likely on the Monthly Chart before it runs into resistance.
Gold Bugs Index ($HUI) -- The miners and gold have obviously broken out. The next areas of resistance on the Weekly Chart are at 460 and 520.
US Dollar Index ($USD) -- The greenback could potentially pop here, but I think the destruction will continue until it reaches the 74.00 area on the Weekly Chart.
Dow Industrials ($INDU) -- The intermediate term target on the Daily Chart is at the upper trendline in the Rising Wedge that began in March 2009, currently at 10,200. A move to the 50 MA and possibly the lower trendline could occur before we make a run for it.
Bank Index ($BKX) -- The Weekly Chart still has clear resistance at 50.00 with support at 44.00.
Dow Transports ($TRAN) -- A run to the 4300 - 4350 area on the Weekly Chart is likely before a meaningful correction occurs.
Crude Oil Index ($WTIC) -- Crude has broken out on the Weekly Chart and measures to $88.00. Initial support is located at $74.00.
Oil Services Index ($OSX) -- A move to 220 - 230 is likely on the Monthly Chart before it runs into resistance.
Gold Bugs Index ($HUI) -- The miners and gold have obviously broken out. The next areas of resistance on the Weekly Chart are at 460 and 520.
US Dollar Index ($USD) -- The greenback could potentially pop here, but I think the destruction will continue until it reaches the 74.00 area on the Weekly Chart.
