Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Support Levels for the S&P500 are Holding

|Includes:FedEx Corporation (FDX), SPY, SPY
I show two support Levels for the S&P500 on the graph below.
 

 

#1 200-day-moving-average MA(200) was solid resistance not penetrated since May 2008. Now it is support that has been tested several times from above before the last rally.

#2 The dashed green line on the chart is the neckline of an inverted head and shoulders bottom pattern. One shoulder is "somewhat hidden" as only some components of the S&P500 were weak while others were quite strong. The pattern broke out in May and has successfully tested the neckline from above. All we need now is a rally with volume to feel very bullish.

If you have trouble seeing the inverted head and shoulder's bottom, perhaps this chart of FedEx (more FDX Charts) will make it easier.

(Charts at Original Article Here)
 

Disclaimer: I currently personally own FDX and SPY.  I also cover FDX and SPY in "Kirk Lindstrom's Investment Letter" where I currently have both in my explore portfolio.

Stocks: FDX, SPY, SPY