Aug 26, 2013


Short term signal: NEUTRAL - it will turn down bellow 1646 and up above 1661.
Intermediate term signal: DOWN
Comment: a little bit more to the upside as expected, 1670 almost touched... such price behavior fits more to a corrective move. Usually a rally from a bottom starts explosive and you see in the first three days strong move up. Go through the charts and look at the first three bars from every bottom.
The current move up is at day three and looks... terrible:) I will not be surprised to see lower low on the Dow for example.

Watch price behavior for clues:
- short term bottom and corrective move up - retracement should soon begin with a top for the current wave up bellow 1675.
- a rally to new highs (if I am wrong) - two or three strong green candles moving above 1682 and 1700.

Levels to watch SP500:
- 1682 is now resistance
- 1650-1660 important area, congestion zone. Retracement of the current advance should stay in this area.
- 1598 is major support.

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