Tuesday, August 30, 2011

In the Cards

Now that SPX has met my objective of surpassing 1208, which I wrote when it was in the 1130s, here, I see a move to 1250-1260, followed by a drop to 1200, then a move to 1295ish. The circles are the points of contact along the resistance levels.

To me, this is possible because a) short squeeze territory is above 1250 b)the 200 day MA or EMA can be around 1280-1300 if and when prices reach there and c)a retracement that large before another drop conforms to the market's habit of being deceptive.

1 comment:

  1. I doubt it. I think we're going to have trouble getting over 1250. In fact, I think we drop 20-30 points here (from ES 1218 high) and then form a top around 1230 or so.