S&P has traded lower as expected and come within striking distance of 1430/29 target. We still look toppy from the daily charts and the 60 min charts have eased the severe oversold indicators that have been evident. Already we have hit the 23.6 short term fib level, and we are backing off this point as this is being written...
There is scope for another move lower quite quickly and we see still 1430/29 as a viable target. Here cover shorts. Re-instate
shorts on a break below 1427. A loss of this support keeps the pressure on the downside and sees further weakness leading to
1418 possibly 1414 over the next few sessions. Cover shorts. Now although I expect the market to continue to weaken, there
are targets set, as markets do not usually go down in a straight line...so cover shorts, re-sell a break of support is the way forward over the next few sessions.
We have resistance to 1438. If we exceed this resistance we have 1443 then 1446 and here we are sellers once more for continued weakness.
The article was first published by CharmerCharts