SP 500 Technical Analysis 2012.04.05

Technically speaking, there are 2 strong support lines on S&P Index that will trigger the sell signal if they are breached.

On the mid-term (the last 4 months), the market evolved in a rising wedge (between T1 and T2) and the violet support line is also very important for the near term.

The sideways market in the last 5 weeks, created after a period of rising trend, shows the indecision of the investors and it could mean a distribution.

To sum up, there are high chances for an intermediate correction that could travel down to the 50% retracement level ($1,289) where the October highs were also created.   

Bank Of America - in a corrective move. 2012.04.05

The Bank of America shares price are in a corrective move for the past few weeks, retracing from the 50% fibonnacci level which acts as a resistance.

The declining volumes are typical for the corrective move of the market and the $8.90 area stands as a support for price. Moreover, the rising channel is framing the market and its limits are offering support and resistance for the price.

An eventual reverse in the support area will set the market for a bullish perspective, targeting the $11.07-$11.34 area. 

Previous analysis here: http://markettechnicalview.blogspot.com/2012/03/bank-of-america-is-set-for-rally.html