Wednesday, June 16, 2010

S&P500 short-term: Range breakout

Last post on the S&P500 called for a leg up towards 1140-1150. With the surge from the last session, prices broke above the 1100 range. Overbought in the very short-term, price needs to consolidate above 1090-1100 area to launch higher. Here's the hourly chart:

Refer to last post for the daily chart, and path projection. A sustained break above 1100 will meet resistance in the 1140-1150 region, and possibly target upto 1170, depending on the strength of the move. That should setup the right shoulder.

On the other hand, an immediate reversal & breakdown below 1090, will probably lead to a retest of 1040.
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