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Technical analysis for S&P
Written by article default Tuesday, 21 December 2010 11:57
The movements of the index during the previous period, where it became very close to 200% of (i) wave at 1251.00. If it reaches this level, we should observe the price behaviors as it is a very decisive level that might differentiate between recover or resuming the bullishness.A break of 1251.00 will send it towards 224% around 1280.00, while failure to do will bring a recovery action, targeting the top of the third wave around 1224.00 and might extend towards 1216.00-the peak which was recorded on April 26.
Measuring the fifth wave depends on the corrections of fourth wave and thus, there is a probability of touching 1257.00 as an extension before moving to the downside. In that case, the index should stabilize above 1257.00 not 1251.00 to be able to reach 1280.00 zones.
In result, we believe that the bullishness will dominate the movements, targeting 1251.00-1257.00 areas and may be 1280.00 zones, while failure to stabilize above 1251.00 will send the index downwards towards 1224.00-1216.00, supported by momentum indicators.