Aug 27, 2013


Short term signal: DOWN - it will turn up above 1646.
Intermediate term signal: DOWN
Comment: As I have said yesterday this move up looks terrible. A little bit surprised from the strength of the move lower, but that is why we have signals.
Keep it simple - down is down. Next support levels are 1625 and 1600. The first move lower was 70 points. From the top from yesterday 1670-70=1600... interesting:) Probably bounce from 1625 to 1645-1650 and than lower to 1600. If a bounce moves above 1655 the move lower probably has finished.

Watch price behavior for clues:
- short term bottom - price should find support at 1625, 2-3 strong days and price moving above 1655.
- move lower continues - max weak bounce staying bellow 1650.

Levels to watch SP500:
- 1645-1655 important area, congestion zone, now it is a resistance.
- 1598 is major support.

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