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S&P500 - Important Levels to Watch

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IMPORTANT LEVELS TO WATCH

http://marketsanalysis.net/?p=1412

A sideway action, which looks unfavorable for bulls, so far, is hovering just below a major resistance zone. We don’t know yet if this pattern will turns to be a Head-and-Shoulders topping reversal pattern, but if so, it will reverses the 2009/ 2010 Bull Market. You must know that the trend will remain in force until the bears decisively penetrate the rising blue trend line, but in this commentary we want to identify important levels to watch and question the current structure extensively.

The rally, which initiated off late June swing low, found resistance, concentration of supply, just below the early May swing high (possible Head). The current decline may encounter a buying pressure near the horizontal support line @ 1,300, but any bounce shouldn’t be taken as a reason to be bullish on the market, because s long as the index lies below the structure key resistance zone (1,345/ 1,370), the odds will continue to be in the favor of a continuation of the current lateral action.

A decisive down-breakout below the “prospected” neckline (nearly below 1,270)- which will take place after penetrating a rising major green trend line- signals a completion of the pattern and indicates that sellers will dominate the markets for a long time to come.

Ramy Rashad, CMT
 

tinhat

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I'm very new to reading charts but, if the S&P500 manages to turn around we could be seeing the formation of an inverse head and shoulders with the inverted head having formed around mid-June. This would see the the S&P 500 breakout above 1365. We would have to see a good reporting season, the debt ceiling raised and nothing catastrophic to come out of the sovereign debt woes of Europe, I would imagine.

Interestingly, the market movement around the time of the tsanami formed another recent inverted head-and-shoulders with the inverted head forming mid-March. The end of that inverted head-and-shoulders saw the S&P500 break out above 1345 in late April.

Then again it could just keep heading south. Who knows.
 

Logique

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Impossible situation. It appears to setting up as a Head and Shoulders reversal, with the downside target at around the November 2010 level around 1180. But on the other hand you couldn't see the US not raising the debt ceiling, which would stimulate the market. So we wait to see.
 

Wysiwyg

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Gee it looks close to falling away. Be interesting to see if I can change the future with my participation. :bbat:
The futures are so close to that support line. The obligatory bar/s up to shake the shorts out is still a possibility. The SPX ....

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Modest

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Gee it looks close to falling away. Be interesting to see if I can change the future with my participation. :bbat:
The futures are so close to that support line. The obligatory bar/s up to shake the shorts out is still a possibility. The SPX ....

View attachment 66748
If it does plunge there's really nothing in the way of 2010 level :eek:
 

Modest

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We've just punched the ES Neckline at 2026....

Hello 2010-2012 level :eek:
 

Modest

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Could this be an OPEX bounce?

Equity Index Options | Last Trading Day
Last Trading Day for equity index options (standard expiration)
 
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Could this be an OPEX bounce?
'Tis a friday and moreso the third of its kin inside this month. Thy seers with their balls of crystal beseech thy wariness of unseemly happenings so portended within the realm of mortal men.
 

Wysiwyg

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From another perspective. In the last 25 years, which in human life is a comparatively long time, the S&P 500 has peaked twice in 2000 and 2007. What we see happening now is not that. :D So it could be one of those two headed thingy's or an escarpment leading onto an extended rise. Know not I. China down, America up. Might be some sought of money flow see-saw.

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CanOz

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Its really looked like a bullish pattern all along has it not, if it were an individual equity, would it not look bullish, consolidating on the highs? Its not like its rolling over....quite the contrary, it just doesn't want to roll over. Makes sense too, as yields turn negative, should the equity markets not get the love? Regardless of the Feds efforts to raise...
 

Wysiwyg

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Being bought on the sharp sell offs which have made lower lows and being sold at resistance levels multiple times doesn't remind me of anything I have seen that makes it bullish. The buyers at resistance are either being worked over or have steel balls to hold through the plummets.

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