Thursday, May 17, 2012

You Say the S&P is Going to 1292.66?

On Wednesday the index closed at 1,324.80 and  looks wobbly at this morning's open.
From Channels and Patterns:

1340 SPX Support Broken
1340 SPX broke with some confidence yesterday and is no longer strong support. The double-top and H&S targets on SPX are in the 1292 area at the October high and that is the next big support level on SPX. Those are both high probability patterns and looking at a wide spectrum of charts this morning the odds that we will see that test in the next few days or weeks looks good. Everything looks oversold and we may well see some decent bounces on the way however. These bounces will look like good short entry points. Here's the SPX 60min chart: