Yesterday, trading saw the S&P 500 reverse from a major move down into the weekend, with another 35 points down through Sunday and Holiday Monday. S&P tested the 1135 area of support yesterday morning before buyers re-entered the markets, changing direction back in a bullish direction. Price moved from yesterday’s 1135 low and has traded into the 1180 area of resistance through overnight trading. Should buyers remain in control of this, target area’s include 1181.00, with 1189.50, 1202.00 to follow and an extreme high of 1218.50. Volume on yesterday’s trading saw just over 3.1M contracts, keeping with the increased volume we have been experiencing lately. With price approaching the top of this bearish flag pattern, an increasing volume pattern along with a break through the resistant trend line could clear the way for price to move back to the 1255 area again. However if price moves into the 1200 area of resistance and buyers are not committed to see it through, this would be the area that I would watch for the turn and another, larger, move by the bears.
Trade what you see, I’ll see you at the starting line!