November 11th, 2009 by 
A quick S&P 500 morning update to point out the current price level and some observations.
The move so far this morning is what should be expected for “Hump Day”. That is, rising up to the top, climaxing, and then “rolling over” the hump.
The “hump” of course being today, Wednesday, midweek.
Taking a look at the chart below, you can see that today’s move so far is less than enthusiastic.
You can see by looking at today’s candle that the market was higher earlier today, and has since pulled back from those highs. Sound familiar? Here’s what I mentioned to watch for on my post 2 days ago here S&P 500 Update 11-09-2009:
Looking at the updated chart below, the next area of possible resistance, and the area to help form the possible double top, would be near 1100. I feel this also is now providing a strong “round number” attraction since we are so close. So even if the market moved lower tomorrow morning, I would expect a pop to this area first before the reversal.
While this didn’t happen yesterday, it appears to be happening today. So far this morning, the candlestick shown is representing a nicely formed Shooting Star, which is typically a Bearish formation for anyone using Candlesticks in their analysis. In addition, notice the weak volume that has occurred during the current uptrend.
This doesn’t mean the top is necessarily in, by itself. It does show a lack of follow through as the price level only briefly breached the most recent highs of 1101.36 reached on October 21, 2009. This morning’s high registered just above that at 1105.37, albeit briefly.
Following up from my previous posts : S&P 500 Update 11-09-2009 which mentioned to be on the lookout for the Head and Shoulders Pattern which has failed, and then went on to mention the next pattern to watch for would be a potential Double Top:
With this mornings brief move above the recent highs, the Double Top pattern still has potential to occur. Brief moves, or even one or two day moves up through prior highs by relatively small amounts do not eliminate the possibility from a Double Top occurring. They should only make you aware that the potential exists for the trend to continue higher.
We’ll have to pay close attention to see if today’s “hump” proves to be more than just a mid-week occurrence and possibly develops into one of a larger picture to be observed on the S&P 500 chart in the days/weeks to come.
Where do you think the S&P 500 is going from here?
