Oct 3, 2013


Short term signal: DOWN - it will turn up above 1683
Intermediate term signal: DOWN - it will turn up above 1693
Comment: SP500 almost touched the lower trend line of the wedge, 61,8% retracement and reached support zone. The move is definitely corrective. The cycles are nearing a bottom. BUT still no signs of a bottom. Stay short but tighten the stops...

Watch price behavior for clues:
- top is in and leg down has begun - sell off continues and we see technical damages - move bellow 1670.
- a rally higher underway - not more than a pullback to support 1675-1682 and another move higher.

Levels to watch SP500:
- 1710 - resistance
- 1670-1680 - support level
- 1627 - support level
- 1598 - is major support.

The channel has been expanded. Probably final push lower with divergence will mark the bottom for this move....

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