Weekly charts provide some of the best insight into what is going on in a particular stock or index. Funny thing is, most people ignore the weekly charts and instead rely only on the daily charts. However, the weekly charts tend to be much more clean and understandable from a market/stock direction stand point and the trend that it is likely to follow.
With that said, by looking at the S&P Weekly chart below, you can see that we are at a multi-year support level that Wall Street has to be careful that they don’t close below. If it does, you could see a lot of people go cash, which would send the S&P and utlimately the broader markets even lower. If we can hold these levels, coupled with the putrid news coming out of the financial sector, there could in fact be a bottom put in to this market. But any break below 1215 – 1220 range on the S&P could see further selling, possibly levels not seen in years, like 1175. So watch this critical price level carefully. It may very well dictate where we go from today, on forward.
Here’s the S&P Weekly Chart
