Final up-thrust on S&P
The S&P Daily chart shows that the last three days were nothing but a final up thrust above the main resistance level at $1,262; Yesterday’s price action confirmed that the buyers are exhausted and this could lead both to profit taking and short selling.
The broader picture of the price still defines a bear market as the may highs are intact after a series on lower lows and lower highs created during the may-octomber period.
In the next days we could see a retest of the 1,262 resistance level and the fail to break it will give further confirmation of a larger decline. On medium term, the target for the down side is below the early octomber lows ($1,092 area).
The current support level is set at $1,230; however better strategy for the up coming weeks (or even months) will be to sell the pullbacks (usually 38.2%-61.8% measured from the previous swing).
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