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Friday, July 17, 2009

New Support Levels for the S&P500 are Holding

I show two support Levels for the S&P500 on the graph below.

Click chart courtesy of for full size image

#1 200-day-moving-average MA(200) was solid resistance not penetrated since May 2008. Now it is support that has been tested several times from above before the last rally.

#2 The dashed green line on the chart is the neckline of an inverted head and shoulders bottom pattern. One shoulder is "somewhat hidden" as only some components of the S&P500 were weak while others were quite strong. The pattern broke out in May and has successfully tested the neckline from above. All we need now is a rally with volume to feel very bullish.

If you have trouble seeing the inverted head and shoulder's bottom, perhaps this chart of FedEx (more FDX Charts) will make it easier.

Disclaimer: I currently personally own and I cover FDX and SPY in "Kirk Lindstrom's Investment Letter" where I currently have both in my explore portfolio.

Doubled Money in a Down Market!

Since 12/31/98 "Kirk's Newsletter Explore Portfolio" is UP 114% (over a double!) vs. the S&P500 DOWN 9.2% vs. NASDAQ down 14.0% vs. Warren Buffett's Berkshire Hathaway (BRKA) up 28.1% (All through 7/16/09.)

As of July 16, 2009, "Kirk's Newsletter Explore Portfolio" is up 10.2% YTD vs. DJIA down 0.7% vs S&P500 up 5.7% YTD

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