(click the image for a bigger picture- S&P500 daily chart )
Then we saw a continuous buyback above that strong support area (792-800) which took the market to 825 in the close and 830 right now before the European open.
What does it tell to me?
Well i made up the story couple of days ago when I saw the first signs of weakness.
I believe the market has a good support above 792 for now and we have a strong resistance at 865 as mentioned before. But an even stronger is at 930.
Probably the market will stick in between 800-865 for a while with couple of false breakouts unless we get some real news to define the direction.
Personally I believe we will go back down at least to 750 in the coming months. Even retesting the March lows is quite possible.
For now I am keeping my position , and I will buy some s&P short ETF as we go up to lock in some profits.
As you can see the market is still in the uptrend on a close basis.But this is the third time I lower the slope of the trend line, which I think is a sign of bulls having difficulties to move the market further up.
Yesterday we kicked off the day in Europe when S&P was trading around 803.
This was due to the overnight weakness in Asia.Then we saw a continuous buyback above that strong support area (792-800) which took the market to 825 in the close and 830 right now before the European open.
What does it tell to me?
Well i made up the story couple of days ago when I saw the first signs of weakness.
I believe the market has a good support above 792 for now and we have a strong resistance at 865 as mentioned before. But an even stronger is at 930.
Probably the market will stick in between 800-865 for a while with couple of false breakouts unless we get some real news to define the direction.
Personally I believe we will go back down at least to 750 in the coming months. Even retesting the March lows is quite possible.
For now I am keeping my position , and I will buy some s&P short ETF as we go up to lock in some profits.
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