Market Update for Saturday, June 18, 2011

The S&P 500 bounced off its 200 Day Moving Average (green line) this week which was at around the 1258 level. Meanwhile the longer term upward trend line (red line) from the March 2009 low is also close to the 1258 level as well.

Most indicators appear to be oversold and the S&P 500 could bounce from here. MACD is trying to turn on the 4h chart; however, it hasn't turned on the daily chart. I'd wait for a turn on MACD daily to add to a long position here. My recommendation is to stay cash until then. Another thing to watch is the Dollar Index, its MACD on the daily chart is still positive; similarly, wait for a turn on it for confirmation.