Aug 20, 2013


Short term signal: DOWN - it will turn up above 1660
Intermediate term signal: DOWN
Comment:SP500 moved bellow support yesterday, but we did not see acceleration to the downside. With all the signs for a oversold market(short term) a green day is not a surprise. I think that we saw the bottom or in worst case test of the low before moving higher for a week at least.
Tomorrow is FOMC Minutes, lets see if they will mark top/bottom as usual.

Expected behavior for:
- the drop continues - another long red candle... with follow through (very unlikely).
- start bottoming(short term) - move back above ~1660 which is last minor low, support and MA50 daily.

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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