Aug 28, 2013


Short term signal: DOWN - it will turn up above 1646.
Intermediate term signal: DOWN
Comment: SP500 touched 1627 just shy of the support level 1626 and bounced higher as expected. The price action confirms for now that this is not a new move lower. When a new move starts a huge bar ignites selling(or buying) and there is follow through for several days and not 50% retracement on the next day.
Short term prediction is difficult at the moment. I do not know if wave b is over and the last selling has begun or there is one more push to ~1645-1650. We have long weekend, war in Syria??.... but I would watch for opportunities on the long side in the next days.

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.

No comments:

Post a Comment