Let’s take a quick look at a few charts
Not much has changed on the weekly frame. S&P is still at support. There is, as you can see, a confluence of lines and moving averages. We also have a couple of OEW pivots in this area. So, I would not be surprised if index makes a low close in this area and attempts a rally.
Of course, trying to pick a bottom can be very hazardous to one’s health and wealth. So, any attempt should be with discipline and proper planning with specific entry and exit levels.
The weekly chart does not look broken, but it is seriously wounded. It needs serious bull action to force the bears back.
Daily frame does not look very good. Friday ended with a loss of 1090 pivot and the 89 EMA that have been holding the index for a few days. A lost support often becomes resistance and I shall keep that in mind when S&P finally attempts a rally.
There is not much in terms of technical support on the daily chart until the 1061 pivot. Daily frame is getting oversold. So far, short term oversold has failed to get any meaningful bounces. Now the daily is getting oversold into levels we have not seen since November and we just have had a brand new high. The lack of interest on the buy side is not very reassuring, especially after a brand new high for the rally. So, I would not bank a lot of chips on the long side just because the index oversold in here.
S&P has to recapture and hold 1090 pivot, and that would be just a start.
This is a 60-min chart
I have modified the short term count to account for an extended minor wave 3. Index is in a solid short term downtrend and the first thing it should do for the bulls, regardless of the count, is higher high, and then a higher low, and that would be a start.
Support is 1061, and 1041. Resistance is 1090, and 1107.
Long term trend is up. Mid-term trend is down. Short term trend is down (a move above 1098 may change that)
Have a Nice Week!
S&P 500 – May 15, 2012 - Bottom Line: Long term trend is up. Mid-term trend is down. Short-term trend is down Weekly S&P stage is Late Advance (2-C) Daily S&P stage is Strong Decli...
1 year ago