Monday, May 02, 2011

S&P500 Recovery Continues

The S&P500 weekly chart above depicts a bullish picture bouncing to and from Fib retracements and extensions. Last week the 1350 resistance was broken on the third attempt heading towards 1440 area and possibly even higher towards the 2007 all time high.

Nevertheless, the daily picture below shows that the recent leg higher could also be the 5th and last one targeting the 1400 - 1440 resistance area until around mid May. A longer and deeper correction could follow afterwards. "Sell in May and go away!" could be a good advice once again!

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