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, December 20, 2011

SP 500 Technical Analysis 2011.12.20

SPX Index created a correction channel in the month of December, traveling down to the 50% retracement of the late November - early December rally.

The market personality in the past 3 weeks shows a corrective move as the internal swings are choppy and large. The 19th dec. lows close to the 15th dec. lows where formed due to bears weakness (classic down target was at T2 trend line). This, along with the grat support of 1,200 area, sets my bias towards a reversal.

However, I will expect further confirmation given by T1 break and creating higher highs and higher lows in the future couple of days. I am also monitoring the possible retest of T1 (as a support) after the eventual break above it.



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