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Bears In SPX Still Not Strong Enough

ByAlexandros Yfantis
Published 11/07/2012, 04:32 AM
Updated 07/09/2023, 06:31 AM
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If you have been following our chart analysis for some time now, you will have noticed how precise our support and resistance have been.

SPX
Tuesday's low in SPX has touched the lower pitchfork at 1408 price level. Support levels have been held as bears were not strong enough to break them. Since then, prices have managed to climb above the middle pitchfork and make a double top just above 1430. Obama's win according to many traders will push prices higher. All I know is that if prices break above the 1434,27 high, their next target will be our before mentioned resistance at 1442 where the upper pitchfork trendline stands.

A bullish wave count (red) and a bearish wave count (blue) are also depicted on the chart. The common ground for both those wave counts is that prices will tend to go higher towards 1440-45 level.

Still the 1403-5 level is important support. Price action above this level makes us believe that if broken, prices could collapse and we could have a small selling panic towards 1380-70. So beware of post election bullishness and always trade with a stop.

Disclosure: None of the information or opinions expressed in this blog constitutes a solicitation for the purchase or sale of any security or other instrument. Nothing in this article constitutes investment advice and any recommendations that may be contained herein have not been based upon a consideration of the investment objectives, financial situation or particular needs of any specific recipient. Any purchase or sale activity in any securities or other instrument should be based upon your own analysis and conclusions.

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