Aug 12, 2013


Short term signal: DOWN as long the price stays bellow 1696
Intermediate term signal: UP as long the price stays above 1675
Comment: The price action is more favorable for the bulls and confirms my expectation for one last move higher... at least for now. The question is only if the bears will have the strength to move the price bellow the range from the last 3-4 weeks to the next support level 1675.

Expected behavior for:
- the pullback to continue -> clear move down not like the previous days up and down and candles with small range bodies.
- the pullback is over -> move above the last minor high 1696 and EMA50 on the hourly chart

Levels to watch SP500:
- 1700 minor resistance to the upside. If the price moves above it the pullback is over.
- 1675 is now support. If the price moves bellow it the intermediate term direction will turn down.
- 1650-1660 important support, the pullback should not move bellow this area, or this is more than a pullback. - 1598 is major support.

Closer look at the hourly chart... Another day of indecision and low volume. The bullish scenario is shown on the chart - small double bottom with positive MACD divergence.

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