S&P traded lower as expected and although we lost 1404 it was for a very short time and buyers came back and bought for 1414. Now we know 1414 was good support...so this will now act as resistance. The small up move has eased the short term oversold indicators and we are looking quite good to trade lower this session.
We still have support n the 1406/04 area, and if we lose 1401 then we are going to trade lower and this is when we will see
1395 then 1389. We can see buyers in at these lower levels so we would cover any shorts and go small long..Tight stops will be required as a break of 1386 will push us lower to 1380 / 1376.
1414/18 is resistance on the topside...If we can get as high as that today we are waiting to sell this market. It is only a break
above 1423 that would take off the immediate downward pressure, and we could then maybe see the 1427/1433 resistance
band tested...However...my money is still to the downside...and even if we traded this high....it would still be a sell...Weekly
trendline support is at 1373....
The article was first published by CharmerCharts