Stock Technical Analysis of the S & P Index

by The Smarter Wallet on June 17, 2009

I’ve been watching the stock market carefully. As part of my introduction to the world of technical analysis, I’ve been monitoring how the stock indexes have been doing. If you’ve been following this blog, you’ll note that I’ve been eyeing the S & P index in particular, and have discussed to some extent, its behavior of late. In fact, based on the trends we’ve seen over the last few months, I’ve been anticipating some kind of market correction.

With regards to how the S & P index has been doing, here are some posts I’ve written on this subject recently, showcasing the MarketClub tool:

In recent days, we’ve seen the market pull back a little from the nice rally it’s been experiencing recently. Not sure if this is the start of something bigger, but some of the stuff I’ve been learning through (an investment research and education firm) have implied a change in market direction.

Of course, there’s no guarantee that predictions come true 100%, especially since stock market behavior can be quite fickle and subject to interpretation. So this is where stock trading experience and a good stock charting tool can help. While I don’t have much experience in stock trading, I do think I’ve stumbled upon a technical stock tool that seems to be pretty decent. At the very least, I’ve been enjoying the video lessons I’ve been receiving from demonstrating the use of their flagship stock charting and analysis tool called MarketClub. If you’re in the least bit open to the idea of technical analysis and stock trading, then you may be interested in the material I put forth here.

Stock Technical Analysis of the S & P Index

Now if this stock charting software is to be believed, then we should be seeing the S & P index’s upward move petering out sometime soon (well, it’s already pulled back a little as mentioned). Here’s the latest video on the status of the index as covered by Adam Hewison of

Click on this link or the image below to watch the video:

stock technical analysis, S & P index

What the video is telling us is that while the stock market moves up, the upward movement hasn’t been too convincing, with momentum faltering. The S & P index seems to be facing some difficulty breaking through the 950 level. Following are some of the points made in the video that I’d like to summarize. The video also showcases some of the interesting features of the MarketClub tool in action:

  1. The recent runup in the S & P index has caught veteran traders by surprise, many of whom are waiting for a market correction that would retest previous lows. This runup is the index’s second attempt to try to close above the 950 mark.
  2. The MarketClub monthly and weekly technical trading indicators shed some light on trends and market timing opportunities (including how to cover a short position).
  3. Momentum indicators show negative divergence — which along with candlestick charts — point out how much the market’s been under pressure lately.
  4. The video demonstrates how to use stops using a feature called “Donchian Channels”.

So from what I’m viewing here, there’s indication that the market is in conflict and may be vulnerable to a correction.

Free Stock Trading Tools And Other Investment Resources

If you’re interested in this sort of stock trading analysis, you can check out INO’s free offerings such as their Trend Analysis tool and their free INO TV channel, where you’ll get to see some educational trading videos at no cost. For a deeper education in technical analysis, stock trading and investing, you may want to sign up to the INO TV premium service (note that this is a paid service) or check out the aforementioned MarketClub system.

For more cool INO training videos, check out these articles:

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