Friday, February 6, 2009

Analysis for last stock market bottom.

The picture above shows 6 months chart for S&P 500. Many investors call "stock markets have bottomed". Let's have a look to last stock market bottom 2002 in charting.

This is 6 months chart with last stock market bottom on October 2002.

You can see first low on July 02 with quick 2 days recovery. Similar to our last November low 2008. This has formed support line somewhere around level of 820. Later S&P 500 made several retests and finally dip below but not below its intraday low from July.

Similar to our last low in 2008. We saw 2 days reversal at the end of November. Primary support line is now on level of 800. Secondary support is 52 weeks low at 750 points. And we are right now retesting primary support line.

and here is also bigger picture for last stock market bottom...

You can see actually 3 lows. The second lower low (in closing prices) had also bullish divergence in many technical indicators (RSI, MACD).


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