Key Resistance Points

The ETF's that represent the major indices are approaching key resistance levels.  While technicals and fundamentals barely matter anymore, the markets have come a long way in a short period of time.  With momentum waning, resistance may actually do what it normally does - slow this advance.  Now that would be a novel idea!

Figure 1 is a weekly chart of the S&P Depository Receipts (symbol: SPY).  The red and black dots represent key pivot points; these are areas that represent the most significant buying (support) and selling (resistance).  As you can see, the SPY is coming into a resistance zone between 130 ~ 132.  This resistance zone is from January, 2008.

Figure 1. SPY/ weekly

 

Figure 2 is a weekly chart of the PowerShares QQQ Trust Series (symbol: QQQQ).  Price is coming into the next level of resistance at 57.36, which is a key pivot point going all the way back to January, 2001.

Figure 2. QQQQ/ weekly