Can't say you were not warned about this decline!!

One of the most important trading signals   was given this week and our analysis has given notice to all bulls what would follow the break of such an important support. Futures now trade pre market near 1365. S&P has broken intermediate support and is heading fast towards our targets. Next important support levels is 1300.

As shown in the above weekly chart, S&P has broken the pitchfork support. This breaking down of prices could unfold to something much bigger than everyone expects. Very important support is the 1300 price level. Until then we shall focus in the form and pattern of any upward or downward move, in order to configure if trend has changed or the decline is just a larger degree correction.

 Another signal given from our charts is depicted above. It was also mentioned that every rally after a correction was smaller than the previous rally. Was the market running out of fuel? It seems that way and prices are now correcting sharply. Again our chart above gives 1300 level as an important support at the middle pitchfork.


 You can read our previous analysis alerts here:

• http://profitablerisktaking.blogspot.gr/2012/11/signs-that-spx-could-fall-towards-1330.html
•  http://profitablerisktaking.blogspot.gr/2012/11/s-wave-count.html

My view is that corrections are welcomed. Prices should not and can not always rise or fall. The market as everything in life moves in circles. After an upward phase, comes the decline. We should be prepared and not stubborn, we must be flexible and ready to change our views.

One should look at this decline as an opportunity to profit from shorting or the opportunity to buy lower. Prices have just started their correction and we should be very careful when calling a bottom.

Thank you for reading my post and as always feel free to contact me if you need help.