S&P 500: Gap Becomes Resistance?
Gregor Horvat | Mar 03, 2014 05:23AM ET
These days is all about the rising tensions between Ukraine and Russia. Russia’s decision to send troops into Crimea is a war threat which is reason for gap up on Crude Oil. At the same time Russian stock market fell and pulling other global markets down as well. The USD did not move much, most likely because of disconnection between stocks and commodities. Metals are also up today.
On the S&P we were calling for a new high on Friday when prices hit 1866 before market turned down and then also gapped on Sunday at the open. Usually those gaps are filled, but in many cases they will also react as reversal zone, in our case as resistance. That being said, we suspect that stocks will remain under pressure, probably until we get some positive signs from the situation in Ukraine, which may not happen any time soon, so we must be aware of a coming correction on the equity market.
S&P 500 (Mar 2014) 1h Elliott Wave Analysis
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