SP500 - Confluence Indicator

The SP500 had a messy session after breaking out above Wednesday’s 895.25 Inflection Pivot. The MKT is transitioning back into a neutral position with the Weekly resistance area at 931-928 the digestive lid.

Thursday’s, 6/25/2009, action will focus on the 910.50 – 902.00 Critical Range. This is the area of indecision today with the current positive momentum maintaining the controls above 902. A break under this support pivot is needed to bring back the sellers putting the 870.00 target back in play and the contract vulnerable to a negative sentiment shift.

A rise above 910.50 and the positive momentum does its best to impress with the 919.50 and 929 resistance targeted. Look for exhaustive sell signals. No follow through is expected at this time.

Wednesday provided a key indicator of confluence in both the DOW Futures and ND100 for the SP500. Note the 10am highs in all three indices. When the SP500 violated its resistance both the ND100 and DOW did not.

JS Services Price Map Chart Overlay for June 24, 2009

ND100 Index

SP500 Index

DOW Futures Index

The DOW proved to be the best barometer of the late weakness as it rejected from it’s session Inflection Pivot [R Level] and produced a REVERSAL signal under it’s resistance pivot [UP – Upside Pivot] prior to the late sell off in the SP500.

Watch for confluence signals again today. If the markets are going to make a move they will be in sync. If not it is more likely going to be a choppy re-run of Wednesday.

This commentary supports JS Services Strategy Based Trading approach.

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JS

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