S&P 500 direction. 2012.05.11

The long term chart of the S&P Index shows a complete Head&Shoulders pattern. The price broke the neckline three days ago and it triggered a sell signal.

The classic target of a H&S pattern is at $1,295. Other important supports in the $1,300 area are: 38.2% ($1,290) retracement level of the October – April rise; October 2011 local high at $1,292; $1,300 psychological (round) level.

The short term perspective for the index is neutral, as the bulls reacted in the $1,340-$1,350 support area. 

SP500 Support at $1,360. 2012.05.09

The S&P closed yesterday above the main support level of $1,360, after the bears dominated the first half of the session.

The bulls managed finally to keep their bids high until the end of the session and they formed a hammer type of candle that usually anticipates a rising move when it occurs at the end of a down swing.

Having all the Europe uncertainty in mind, a reaction is possible and the targets are represented by the 3 main Fibonacci levels: 1,374, 1,381 and 1,389.

Bank of America (BAC) - In a large support zone. 2012.05.09

Bank of America shares price are continuing the corrective channel that started in late March.

The price has reached in the large support area between the $6.90 and $8.13 levels that are representing the 61.8% and 38.2% retracement levels of the December-March rise.

A bullish engulfing pattern was formed on Monday that usually anticipates a price rally. Other clues for an eventual rise are the break above T1 trend line and the break above $8.13 resistance level.

3M Co (MMM) - Strong resistance in the $90.00 area. 2012.05.08

The 3M shares price reached the $90.00 resistance twice in the last couple of months which is stand in the same area as the T1 trend line.

The most probable scenario is a correction in the next few weeks, targeting the $85.00 support in the first stage. If no great news will occur, than the investors will react to the multiple resistances in the $90.00 area.

On the short term the price action created a rising channel which was broken yesterday. This usually triggers a sell signal.

DAX Technical Analysis. 2012.05.08

DAX Index opened lower yesterday (almost -3.00%) after the Greek and French elections over the weekend and made an intraday low at 6.410.

The early April analysis of DAX (http://en.goldring.ro/analysis_details.php?analyse_id=2396 ) revealed the market risk for the mid-term and now, after a month, the main support zone (6.270-6.480) was finally tested.

The main focus for this week is on Greece, where a government coalition must be formed as soon as possible. A success in this matter will turn the sentiment, at least for the very short term. The first resistance is at the 6.650 level.

In case more bad news from Europe will come and US economic releases will disappoint, the market is expected to fall below the current support of 6.430.