Aug 29, 2013


Short term signal: DOWN - it will turn up above 1646.
Intermediate term signal: DOWN - it will turn up above 1646.
Comment: The bears with perfect timing pushed the price lower after SP500 hit exactly 1646. Sometimes I am amazed how perfect the market could be. Yesterday I was not sure if b wave up is over and now we have 3 waves up reversing from resistance. If the market wants to move lower, it has nothing to do to the upside anymore. We know now where the line in the sand is - 1646. The perfect move will be lower to 1600 where A=C and W=Y.
Many oscillators with divergences so watch carefully for higher low with something like double bottom. (see the chart bellow)

Watch price behavior for clues:
- short term bottom - price should find support between 1625-1630 followed by 2-3 strong days and price moving above 1655-1660.
- move lower continues - max weak bounce staying bellow 1650 (check), now we should see move lower for 2-3 days.

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

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