Technical Analysis Review for the Week Starting 4/20/15

Key Points

·         S&P 500 stayed within its intermediate range despite the sharp down day Friday

·         Global equity markets had a sharp down day along with the US markets

·         Bonds remain in its short-term range

·         Oil broke through major resistance

S&P 500 (Daily):

 

While last week my expectation was for the S&P 500 to test its all-time highs, it was unable to reach that level. With Friday’s sharp down day the S&P 500 fell back to the middle of its range. The index did close under its 50 day MA. Since price is currently in the middle of its range, closing under its 50 day MA should be taken lightly.

 

S&P 500 (Weekly):

 



 

 

The range the S&P 500 is in can be seen clearly on a weekly basis.

 

Russell 2000 (Daily):

 

The Russell 2000 briefly made an all-time high last week. Unfortunately with the sharp down day across most equity markets Friday the Russell 2000, like the S&P 500, is back within its intermediate term range.

 

TLT (Daily):

 

Bonds remains in its short term range that was noted last week. A break of this range will be indicative of the next direction bonds will take.

 

WTI (Daily):

 

 

The most interesting market last week was oil. It broke through its multi-month resistance and looks like it is starting a new uptrend. Whether this break will turn into a new primary trend is yet to be determined. In the short term oil is consolidating and is potentially forming a bull flag or pennant. A break of $57.42 is a bullish sign.