S&P 500 : Short To 1735
Carol Harmer | Oct 18, 2013 07:32AM ET
S&P as I said yesterday, we would prefer to be short here unless we break above 1735. Only then will the market regain strength and trade higher. I have had to Fib extension here as we have no upside data. As your can see from the Pivot Point analysis, 1735 is also our R1, so this is going to be quite an important level.
If we do break, we have to go with it as we have the 1740/45 resistance looking to entice. Look at our R2 which comes in at 1743. I looks like we are going to see the market do a bit of correction once and if we get to these levels we might go higher. Technically we remain strong though overbought.There is no sign that the market is failing just yet. We obviously are going to see retracements, but until we see a clear picture emerge that the market is going to fail, we need still to buy dips. This, of course, is where your pivot points and Fib retracement will be worth their weight in gold.
The trending indicators I use are slow moving and are just starting to show there might be a trend in the S&P to the topside. I use these usually as a reverse indicator, but am aware of them just the same. We need a move back below 1727 to see us correct today, this would leave 1721 as a target.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.