Dow Retraces Sharply, S&P 500 Trades Above 1907.00
ICN.com | Feb 04, 2016 05:37AM ET
After collapsing yesterday towards the key support of 15900.00 and after achieving all yesterday’s suggested downside targets, Dow has retraced sharply to trade above the key zones of 16240.00-16250.00 again.
It is better now to avoid trading the index as we are content with the profits we made since prices are very close to important resistance at 16375.00, offering inappropriate risk versus reward ratio.
On the downside, coming below 16240.00 with a four-hour closing will bring the bearishness back into focus.
Support: 16250.00-16125.00-16000.00
Resistance: 16375.00-16420.00-16500.00
Direction: Neutral
S&P 500 has reached all targets we mentioned in the yellow zone and now, it trades above 1907.00, which is the clue level.
A new break below it will negate the sharp correction occurred in the evening yesterday, while 1939.00 is the key for achieving additional upside actions.
We prefer to stand aside, as we are neutral between those important levels.
Support: 1907.00-1897.00-1882.00
Resistance: 1939.00-1945.00-1962.00
Direction: Neutral
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