The daily chart of the S&P Index (SP500.cfd) confirms the preferred scenario (as shown at the end of October: http://markettechnicalview.blogspot.com/2011/10/s-500-technical-analysis-20111026.html ), with a wave 3 developing as shown on the chart.
The small gap down of yesterday’s session and the price action afterwards shows the bearish domination and gives perspective on a further decline. The $1,220 support level is now clearly a resistance level and an eventual pullback will probably retest this level.
The H1 chart shows the in-depth price action of the symmetrical triangle started at the end of October. The lower border acted as support until it was broken, turning the support into resistance. The main target of the triangle is set around the $1,150 area, being the same length as the base of the triangle.
The break of the triangle was quickly followed by a retest of the resistance (a pullback was created after the break) before the down move resumed.
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