Aug 18, 2013
Signals
Short term signal: DOWN - it will turn up above 1667 last minor high
Intermediate term signal: DOWN
Comment: SP500 is at level where it is logical to expect a bottom, but there is no signs for a bottoming. It could easily drop another 20 points to kill the early dip buyers and attract
more bears before a retracement. Watch the opening, if SP500 opens bellow the Friday close 1655 and moves in the next one hour bellow support 1650 the odds will favor another drop.
If Sp500 opens higher than 1655 the odds will be higher, that the index has started bottoming.
Expected behavior for:
- the drop continues - open bellow the close from Friday moving fast bellow support 1650.
- start bottoming(short term) - open above the close from Friday
Levels to watch SP500:
- 1682 is now resistance
- 1650-1660 important support. Move bellow it means drop to the next support level ~1625.
- 1598 is major support.
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Thanks for the roadmap and insights Krasi. Are you trading the SPX or the DAX these days?
ReplyDeleteI am trading the DAX. I have opened three times short positions and I have closed them with small gains. DAX just do not want to go lower:) It happens sometimes, the indexes diverge for a while.
DeleteWith something on the upside expected for the SP500 I will not be surprised to see new highs for the DAX. I am not in a hurry, this should be an intermediate term correction and we will have another 5-8 weeks.