Sep 2, 2013


Short term signal: UP
Intermediate term signal: UP - following the rules it is up, but we will see the next several days if I am right and this is only relief move higher before another leg down.
Comment: Looking at the futures my forecast for a short term bottom and positive opening is right... but not very helpful - gaps. I think the news that there will no strike on Syria caused a huge gap up on the DAX and probably SP500 will gap higher tomorrow too.
This move even if it is corrective should last for a while and I expect more upside.... but I am a little bit conservative and I would wait for a pullback to jump on a short term long trade.

Watch price behavior for clues:
- short term bottom - SP500 should find support between 1625-1630(check) and move above 1655-1660, but the move should be corrective and stay bellow 1682
- a rally higher has begun - 2-3 strong days up reaching fast at least resistance ~1682

Levels to watch SP500:
- 1682 - resistance
- 1645-1655 important area, congestion zone, now it is a resistance.
- 1625 support level
- 1598 is major support.

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