Nov 7, 2013


Short term signal: DOWN - it will turn up above 1765
Intermediate term signal: DOWN - it will turn up above 1765
Comment: Soon was really very soon:) Another gap for SP500, huge rally on the DAX and in Europe... and you know what happened. I hope you were smart enough and have opened some shorts. Second chance was the test of the broken trend line around 1765(btw that was the level for the short term signal) After a gap up and reversal for a second time... this is distribution, there is no match to analyze especially with this indicators at this levels.
Now what? - The move looks like a strong impulse lower probably we are in a minor wave 3. The next support level is 1730 and I expect minimum a pullback for several days to 1730. That is the red scenario which I showed in the weekly review. We will see how the move develops and decide if this is the case.

Watch price behavior for clues:
- bearish scenario intermediate term top - we will see a move bellow 1710
- bullish scenario short term top - any pullback should stay above 1710

Levels to watch SP500:
- 1730 - minor support
- 1710 - important support level

The updated chart.... the lower trend line should be only temporary support. The bears should push bellow it in the next day or two.

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