Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Donald Wennerstrom who wrote (46823)	2/14/2010 9:05:46 PM
From: Return to Sender	1 Recommendation Respond to of 95428

Amateur Investors Weekend Stock Market Analysis (2/13/10) amateur-investor.net Since the mid July low each time the S&P 500 has pulled back it was followed by a sharp upside reversal (points A to B). However the most recent correction hasn't been followed by a sharp upside reversal like the previous times. Meanwhile so far the S&P 500 has held support right at its 40 Week EMA (blue line) and just above its 23.6% Retrace from the March low to the January high. If the 40 Week EMA and 23.6% Retrace were to be broken then the next major support area would be at 965 which is the 38.2% Retrace calculated from the March low to the January high. As for the Dow so far it has held support above its 40 Week EMA (blue line) at 9780 which pretty much coincides with its 23.6% Retrace from the March low to the January high. Thus that will be a key support level to watch in the weeks ahead. If that level is broken then the next major support area would be near 9100 which is the 38.2% Retrace. The Nasdaq also has been holding support above its 40 Week EMA (blue line) which coincides with its 23.6% Retrace as well near 2070. Thus this level will be a key support level in the weeks ahead as the next major support level below 2170 would probably be at the 38.2% Retrace near 1920. Meanwhile on a daily chart the Nasdaq could be developing a potential Head and Shoulders Top pattern. If the Nasdaq fails to rally above its 50 Day EMA (blue line) just above 2200 then that would allow for the development of the 2nd Shoulder. The last Head and Shoulders Top pattern that actually worked out on a daily timeframe was back in late 2008 into early 2009 which was eventually followed by a significant bottom in early March. Finally the action in the US Dollar will likely have the final say in how the market acts in the days ahead. There has been an almost perfect inverse relationship between the US Dollar (blue line) and the S&P Futures (purple line) the last several days. Dollar Up (points C to D)...Futures down (points E to F), Dollar down (points D to C), Futures Up (points F to E).