Thursday
Nov 20th
Is the rise over?
S&P500 future touched again today the
upper part of the red horizontal channel and bounced back towards below the
opening level. Technically this situation is very interesting. Can this be the
beginning of a new fall that will bring again the S&P500 to 1300?
The rise
of last days shows that a great numbers of investors are at the window waiting
to see what will happen next. Volumes were incredibly low last week and the rise
was fuelled by few so could the rise seen so far be fake?
Support
1347.50 and 1312. Resistance 1389 and 1400.
S&P Future: The future looks bearish. Technical Analysis
Technical Analysis is the forecasting of future financial price movements based on an examination of past price movements. Like weather forecasting, technical analysis does not result in absolute predictions about the future. Instead, technical analysis can help investors anticipate what is "likely" to happen to prices over time. Technical analysis uses a wide variety of charts that show price over time. (www.stockcharts.com)
January has been a tough month so far, characterized by high volatility
and big spreads. Let's see if we can get a clear view and understand what we should expect
from the future. Charts can say a lot about the future and we want to share with our readers our view of the S&P future.
S&P Future - Weekly Chart
The uptrend channel started in 2002 was violated and it's not pushing up the S&P future anymore, it's now going to test the 61,8% of the Fibonacci Retracement, where it should find a solid support, furthermore the RSI (a technical analysis indicator which measures the magnitude of gains over a given time period against the magnitude of losses over that period) is oversold.
As for the long term scenario, the situation appears now to be compromised giving space to a correction. In October 2007 the S&P future hit its maximum at 1.586,50 drawing a double top (first top March 2000). First Support (S1) is set at 1.270.
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