Courtesy of Doug Short.
Here’s the latest weekend update from Serge Perreault, a Chartered Professional 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.
For the last 4 weeks, the S&P 500 has been moving sideways, below a 3 year high. This week, its volume was 18% below-average and its momentum indicators kept falling (RSI broke a support and ROC is now testing one). The divergence of RSI from last October should also be noted (uptrend at 1 versus downtrend at 2).
The index is only 18 points or 1.3% away from its EMA10, a break of which would confirm a correction inside an uptrend from the summer of 2010.
Note: For newcomers to technical analysis, here are brief explanations for the two key indicators that Serge features:
(c) Serge Perreault CPA Inc.
