Reuters S&P 500 Long Term Technical Analysis By Phil Smith Wednesday, March 10, 2010 12:09 CST Homepage Glossary		Daily Charts HANG SENG SHANGHAI SENSEX GOLD OIL	Weekly Charts HANG SENG SHANGHAI NIKKEI SENSEX GOLD OIL S&P 500 DLR TRADE WEIGHTED
Longer term (weekly chart). The weekly S&P chart is still bearish but the fast line is moving up a bit so it bears watching. The bearish divergence that has formed on the Momentum study is a strong signal of a trend change. The third chart shows clearly that after the last big recession in 2000/01 the market bottomed in 2002/03 and retraced 50 pct before leveling off for a full year. The volumes on the US markets are still not great so that is taking a toll on the price action and has caused this slowdown in the rally as clearly shown by the speed resistance lines and we have now broken well below the second. Watch the dollar as it has a high negative correlation with stocks the moment. (see the dlr weekly link at the top of the page for a correlation chart) As with all the world’s stock markets, the rally since the major turn from the big bear market has been significant and consolidation is the watchword not further gains. See the glossary link above for an explanation of the studies used above.
	Reuters Market Technicals By Phil Smith mailto:technicals@reutersindia.net
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