Getting Technical: Weekend Update

 

April 8, 2011 Analysis from Serge Perreault

Here's the latest weekend update from Serge Perreault, a Chartered Accountant and market technician located near Montreal, Canada. Serge has been following the U.S. market in a series of weekly charts. Here is his update on the S&P 500.

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The S&P 500 weakened this week but remains inside a sideways trading range showing a volatility of 5.6% for the year, on 9% below-average volume for the week and on now mixed momentum.

Note: In his email accompanying the chart, Serge mentioned a general rule of technical analysis theory: The longer the sideways trading range and the more times a support and a resistance are tested, the stronger the resulting breakout (of the resistance) or breakdown (of the support) will be.

Click for a larger image

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Note: For newcomers to technical analysis, here are brief explanations for the two key indicators that Serge features:

• ROC (Price Rate of Change)
• RSI (Relative Strength Index)

http://dshort.com/articles/Perreault/2011/weekend-update-0408.html