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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Thursday, November 24, 2011

S&P 500 Technical Analysis 2011.11.24

The S&P Index continued yesterday the decline, as wave 3 (blue) is developing, as stated in early november: ( )

The price action and the slope of the current swing down is typical for a wave 3, that usually is the longest. Having in mind that wave 1 (blue) that has formed during may-octomber period traveled about 280 points, I expect wave 3 (blue) to be at least this length, this meaning that the price should break below early octomber lows, in 1,090 area.

The price large consolidation between 1,220 and 1,270 (in the first half of november) formed the second wave (wave [ii]) of the larger degree wave 3 (blue). Therefore, we should now see the most clear and sharp fall of the whole longer term down move.

Until further signs of reversal (correction) nothing can stop the price to fall (technically speaking) and the first srong support area is given by previous lows, in 1,090 area. 

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