I decided to look at the weekly today because of some interesting levels in it. Also I am doing a longer term forecast because I will be away for the next few weeks and am not sure how often I will be able to get posts up for you. This way we can anticipate this entire week or two, instead of just the next few days. Just remember the price action tells us where to look.
So where is the S&P 500 going to go?? 5 weeks of the last 6 being bearish, where do we look for the next stop in this seasonally bearish time? Reports have not been good lately, seemingly everything has taken a turn for the worse. Not that it matters to us TA guys, it is all in the charts for us, so why don’t we get to it?
Looking at the weekly chart we can see that the latest moves down have been very consistent in their parking on the long term support lines. Targets on this recent move down have all been closed in the last few week from 1304 all the way down to the 1274 targets, while touching and testing the 1262 area on Friday. Looking at the chart we can see that the next key level to watch the bears move towards is going to be the 1252-1255 area of support. Weekly support in here will come in and make this a key area for this week. If support here will hold, the S&P could see some consolidating here with a small test back up. On the weekly this would give us an inverse H&S pattern to look for the daily signal to see testing into the 1275, 1284, and 1290 area’s. However if support does not hold here in the 1352 area then price could continue to press towards the bottom of the long term Bullish channel and test into the 1240.00, 1227.50, and possibly to 1212.00 support. Key level will be the price action off of the 1252.00 – 1255.00 area. Trade what you see, I’ll see you at the starting line!