S&P 500 - October 24, 2012

S&P has experienced more weakness

It broke below the line that had for a possible contraction

Drawing a parallel, there is now a potential for a down-sloping channel (red lines on the chart below)

Resistance is around 1450

Index is resting on the blue support curve. See how this support curves have stopped the index in stages


Next support curve, which coincides with a few other lines is around 1385

I can zoom out to see where all the lines are coming from

Index is in the danger of confirming an intermediate level downtrend. It is also in the early part of an intermediate cycle low that is statistically due in the Oct 22- Dec 3 time frame

It would be good if we could get a swing low above 1375-1385. It would be even better if index could have another sharp spike down into 1375-1385 before giving a swing low


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