Jul 9, 2011

Weekly review / Седмичен преглед

Nothing surprising this week. SP500 broke the resistance level 1345 just to trap more traders and the pullback began.
NYSE McClellan Oscillator told us the truth:) as I was expecting last week.

Longterm has not changed. I expect marginal new highs between 1380-1400.
Short-term 1-2 days sideway/up move to reset the histogram on the hourly chart, followed by another move down to finish the correction. Target is 1320-1325 where we have cluster of support - 38,2% retracement, the same size 35 reaction like the first one, support level and the trend line. If the bulls are strong the correction can find support at 1330 - another support level and EMA50.
Anyway watch the histogram to make a higher trough low and MACD to touch the zero line. At that point the correction will be over. The next move UP should be twice the size of the correction or at least 70 points and target the 1390 level.

The red line pointing down remember us to watch us for danger. If the next move up does not take out the last high 1356 or SP500 slice through 1320 like hot knife through butter than something else is going on.

P.S. The next three weeks I can not update the charts, I will travel across Bulgaria. If the bullish scenario play out and there is no surprises, it will last 3-4 weeks at least, so there will no be much to be updated.

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