SP 500 At the close feb 12

And using the same lines as before the close. You can also see the descending Triangle in the middle and on the third approach the volume push through that takes the market to close the gap and rally 10 points.

What a day.

Good news, bad news SP 500

The markets had a good start to the day but finished with a drop that left the market 9.75 above open.

FED save a few foreclosures

is an interesting article on 6 lenders to get together for a 30 day reprieve for those that qualify.

Obama also gave some interesting news for those of us who pay capital gains tax. He will be raising it from 15% to 28%......HMMM.

Market is still posing itself for more of a rally. Could be short lived. We will see.

Tomorrow President Bush is likely to sign into law the recently passed economic stimulus bill. It raises the limit on the size of mortgage that Fannie Mae and Freddie Mac may purchase and that the Federal Housing Administration (FHA) may insure. In both cases, the increases are temporary and apply only to loans originated by the end of 2008. If signed, Fannie and Freddie may purchase loans up to 125% of the median home price in an area, up to a national limit of $729,750.

FHA limits, and I assume VA, would see the same increase, and the floor on FHA limits would be raised so that larger FHA-insured loans would become available in low-cost areas.

23 support to test, Yesterdays level SP 500

Let's watch it test the 23. Probably after hours, if alot of momentum then maybe to 19.

We shall see.

It also seems this market is hinging on bonds and their volitility.

Follow up on 5 min support and resistance SP 500

One more chart two days later of the same lines.

42.50, 39, 29, 22.50

Great trades

Head and shoulders, Inverse Head and Shoulders

Volume break outs and direction

Support and Resistance in the SP 500

I have used these lines the past few days and look forward to trading them next week too. Just a note on Spill over...

I expect to see the British Pound then the Euro Show weakness against the dollar. The European Central Bank is jumping in adding liquidity to their markets because of the subprime debacle. I expect to see some consolidation and then a fall.

We shall see.

The daily SP 500 Jan 28 After hours

This is how it looks. We gapped down quite a bit here. Open will be tumultuous.

Traders see a 30 percent likelihood that Fed policy makers will reduce their target for overnight loans between banks by three-quarters of a percentage point to 2.25 percent at or before their next scheduled meeting on March 18, futures on the Chicago Board of Trade show. That probability was 14 percent yesterday. The rest of the bets are for a half-point cut.

Treasuries of all maturities have returned 3 percent since Dec. 31, the best start to a year since returning 4.1 percent in 1988, according to indexes compiled by Merrill Lynch & Co. The worst housing slump in a quarter century, combined with $146 billion in asset writedowns and credit losses at banks and securities firms worldwide, have driven investors to the relative safety of government debt. In the final three months of 2007, the average rate on a 30-year fixed was 6.29 percent. During the third quarter, the average rate was 6.6 percent. For many people who bought houses in 2006 and 2007, this month has been a chance to refinance.

SP 500 daily Feb 6 5 min after hours

Here is the after hours chart for the S&P 500

5 min bars, after the close

Looks like the news is not good no matter how much stimulus you put behind it.

Watch for the fall.