Thursday 13 September 2012

Daily update in S&P

 Our pitchforks both in the daily and weekly chart have prices supported for a move higher. In the short term, S&P support lies at 1420 area whereas intermediate support at 1397. The daily rising pattern in S&P from 1309 could develop to an impulsive move if we count those overlapping waves as 1-2s. This would imply a very bullish scenario with targets above 1500. If this move however is not impulsive but corrective, prices will be expected to fall hard  in the near future. I only see this as an alternative scenario with low chances, although increased pessimism has increased the followers and supporters of this alternative.
In the weekly chart, S&P has found support near the lower pitchfork support line and is crawling on top of it. My experience suggests that a sharp rise will follow if support levels continue to be held. Support areas at the weekly level, are found at 1350 level. At this point I remain positively biased towards 1450 as I have for the last 3 months.

Thank you for taking the time to read my post.

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