Monday, 28 November 2011

Buy the pullback and target 1225-1250 SP500?

I believe we saw a short term bottom on friday and that an upward movement has already started. I expect all markets tomorrow pull back and provide us with cheaper prices to buy. I have SP500 target between 1225-1250. My scenario will get more possibilities if 1200 is broken and maintained. More detailed work to come soon on this new scenario!

 update 29-11-2011

SPX has found resistance at its previous support 1200. Either way a pull back around 1180-1170 is expected. The decline from october highs still looks a 3-wave correction that ended near 61,8%. Long positions after a correction are favored.

Eurusd is getting closer and closer to the red line resistance. If 1,3280 broken then eur will accelerate downwards and will probably brake 1,32.

 DAX is like SPX. A 3-wave decline from the hghs is not impulsive. Yellow line is low of wave 1 that must not be overlapped if we are in wave 3 down. If overlapped then more scenarios will arise. Dominant scenario still is the A-B-C correction to near 61,8%.

In a few words, for the short term I prefer buying the pullback with a view higher.

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