SP 500 Technical Analysis 2011.12.21

The hourly chart of the S&P index shows a nice rally started from that double bottom I was talking about yesterday (http://markettechnicalview.blogspot.com/2011/12/sp-500-technical-analysis-20111220.html) and now is having a correction as the outcome of the ECB news a few hours ago.

There is a strong support in the $1,220-1,230 area that concerns the 50.00% and the 61.8% retracement levels and also previous lows and highs. An eventual reverse in this area will activate the 1,266 target for the long side.

I am not saying that this is must, all I am saying is that one should pay attention to the price action in this area in order to spot a good trade.