Saturday, April 19, 2008

Bullish recovery from US

S&P weekly chart ending 18 April

To continue the article I posted before here, let us see the weekly chart of S&P 500 large cap index which had just ended. The index closed at 4.31% higher than previous week. As you can see, there is a bullish crossover of MACD line over its signal line and accompanied by higher volume prior to the previous week. The next resistance level I expect is at the 50 weeks moving average. If you look at the 3 year chart of S&P 500 large cap index, you can see that this line has been a good support and resistance lines.

On the fundamental front, Google posted good first-quarter earnings and revenue growth that exceeded analysts' predictions. During the week also, Intel Corp and Coca Cola reported better than expected results. Even though Citigroup posted a loss of $5.1 billion due to bad debts on mortgages loan, that result has brought something for the market to cheer about as it managed to trim losses down from $10 billion recorded in the previous quarter. That is in fact a good sign that the credit crises is winding down.

No comments: