These are some updated charts of the S&P 500 Index and the Nasdaq 100 Index. Both indexes are shown in daily charts and 3-day charts.
S&P 500 Index 3 Day Chart (click to enlarge)
S&P 500 Index Daily Chart (click to enlarge)
In the first chart it is important to notice that the prices are starting to test the second standard deviation from the short term linear regression line(21 period). Any momentum above this level, could lead to a move up to the second standard deviation line from the medium term linear regression line(55 period). This is roughly the 970 area that was calculated in an earlier post.
This second daily chart shows a series of higher lows inside of the short term linear regression channel(21 day). At the same time prices are meeting resistance from the medium term linear regression upper channel line. If prices can stay above this channel(yellow line), it can act as support for a move up to the 940 area. There is still an overhang on the market, so any move higher should be scrutinized as to its volume and full participation across various other indexes. Commodities and Infrastructure related companies could be leaders in any move higher. It is still prudent to be skeptical and sell rallies.
Nasdaq 100 Index 3 Day Chart (click to enlarge)
Nasdaq 100 Index Daily Chart (click to enlarge)