Wednesday, June 9, 2010

S&P500 short-term: Upwards towards 1140-1150

Hello folks! Last post on the SPX, called for a rebound towards 1100-1150, suggesting strong resistance around the 1100 area. SPX struggled just above 1100, and went back down looking for support. We may be about to embark on another corrective leg up now, towards 1140-1150. Here's the daily, with the path projection:


SPX seems to have descended in 3 waves since the 1220 high, A[1]. Looking for a 3-waver up towards 1140-1150, B[2] (and setup the right shoulder of the Head&Shoulders), before a possible 5-wave impulse down, C[3] into the 900s. Other variations are possible, but this, for now is my preferred scenario.

Very short-term hurdles at the red downtrendline, followed by 1100 level. A break below 1040 anytime, will bankrupt this projection.

All the best!
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