SPX continues to base within a triangle since 09 Aug (52-week) low at 1101.54. Near term, a break above 1190.68 (Resistance 1) would extend the consolidative strength towards 1208.47 (Resistance 2) then 1218.11 (Resistance 3). However, as the weekly trend studies remain bearish, there is scope for the current corrective bounce to form a swing high under the significant resistance zone at 1227.08/1249.09 (Resistance 4)/(Resistance 5) ahead of a return to the downside. A break below 1135.91 (Support 1) would resume bears to target 1121.09 (Support 2) then 1101.54 (Support 3-Target 1) near 38.2% retracement of the 666.79 (06 Mar 2009 low)/1370.58 (02 May 2011 YTD high). Only a sustained breakdown below 1101.54 would expose 1056.88 (Support 4-Target 2) which guards 1010.91 (Support 5) near 50% retracement.
Trading Indication:
Short-term (Intraday): Possibly buy lower
Long-term: Possibly sell higher
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