The S&P Index (US500.cfd) retraced more than 40% of the previous decline after the triangle target was achieved (http://markettechnicalview.blogspot.com/2011/11/s-500-technical-analysis-20111128.html ).
The main resistance is in the 1,212 area, as there has formed a confluence of three important lines: T1 trend line, 50% retracement and horizontal resistance set by previous lows.
The medium trend is still bearish (since late October) as lower lows and highs are created and the chances are that this trend should continue. I am looking for a reversal in the 1,212 area or even lower if the bulls will fail to reach it. This will prove bearish strength and the 25th nov. lows will be the first target. However, this is scenario is not infallible and we need further confirmation of the price action.
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