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.

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Tuesday, November 1, 2011

S&P 500 Technical Analysis 2011.11.01

Final up-thrust on S&P

The S&P Daily chart shows that the last three days were nothing but a final up thrust above the main resistance level at $1,262; Yesterday’s price action confirmed that the buyers are exhausted and this could lead both to profit taking and short selling.

The broader picture of the price still defines a bear market as the may highs are intact after a series on lower lows and lower highs created during the may-octomber period.

In the next days we could see a retest of the 1,262 resistance level and the fail to break it will give further confirmation of a larger decline. On medium term, the target for the down side is below the early octomber lows ($1,092 area).

The current support level is set at $1,230; however better strategy for the up coming weeks (or even months) will be to sell the pullbacks (usually 38.2%-61.8% measured from the previous swing). 

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