Bar-by-bar Analysis – Week 52 (2011)
The markets rallied on low volume during the last week of trading. Without the increase of demand, it would be difficult to break resistance. So far, only failed attempts at the resistance of the high of bar 6. It was a good opportunity to take some longs off the table. However, it is not recommended to take a short position based on this action since the price fall is due to lack of demand rather than supply coming in. The first day of trading in 2012 will be a key day. Either demand comes back and we break resistance or we will go down due to the lack of demand and sellers will emerge. For now, there is no short term trade.
S&P 500 Index – Daily