Market Technical View is a blog that mostly concerns the technical analysis of different financial instruments like indices, commodities, stocks, ETFs and currencies.

All the posts are structured in 3 main chapters that can be found in Content, in the upper right-hand corner of the blog.

Market perspective. The technical approach consists of chart patterns and important support/resistance zones. The purpose of this section is to give directions of the price on short and medium term (a few days up to a few months).

Trading setups. The analysis posted here will provide trading scenarios based on different technical tools.

Romanian Market. This is a section dedicated to Romanian stocks and indices.

Search This Blog

Wednesday, October 26, 2011

S&P 500 Technical Analysis 2011.10.26

Strong resistance at $1,260 area

The daily chart of the SP shows the price reaching the strong resistance of the 1,262 area.

The previous local lows of mid March and mid June along with the 61.8% retracement of the last few months of the decline forms a strong resistance in this area.

From Elliot Wave perspective we are, most probably, at the end of the second wave of a 5 wave down move on the long term. This is no guarantee that there will be a reversal here. The maximum wave 2 can travel is at the early may peak in in the 1,376 area.

Another bearish sign is the bearish engulfing candle pattern formed in the last couple of days (without the current day). If the bulls will show further signs of exhaustion in the next few days (keeping this week’s highs intact) we could witness the end of wave 2.         

No comments:

Post a Comment