SP500: bull trapped?
Source: http://www.g2trader.com/index.php?option=com_contentview=articleid=54:sap500-bull-trappedcatid=1:elliott-wave-theoryItemid=6Posted on Saturday, December 6th, 2008 | In Market Commentary
Written by Graziano Nanetti Saturday, 06 December 2008 17:42 It seems that S&P500 is trying to start a new bullish pullback, but it is trapped below its first resistance.
Only above 896, or better above 905 on daily close, it could be realistic to set up a bullish pullback that could lead our index to 960 (first target) and then even slightly above 1000, to 1030-1050 area. For this week I don’t change my Elliott Wave counting, but I have some doubts about its validity. If S&P500 holds its support at 816, it is highly probable to see a bullish movement above 905. On the contrary, below 816 it would come back to 750, setting up a corrective flat sideways pattern.
Technical indicators have a bullish configuration: that’s why I am leaning towards a slight bullish movement for next two weeks. But beware of first resistance at 896-905: this could be a stone resistance, very hard to cross. Next great resistance is at 960, where we have 38,2% retracement and the top trendline of descending channel.
Setup date are 9th of December and 19th of December. Of course, Bradley siderograph setup date of 14th of December is also important.
H.F.L.
This work is published under Creative Commons License.Last 5 posts by Graziano Nanetti
- SP/MIB: go down, nice and slow ... - February 17th, 2009
- SP/MIB: the nightmare will go on - January 24th, 2009
- SP/MIB: where do we go - hypo 2 - December 20th, 2008
- SP/MIB and Bradley Siderograph: did it work this year? - December 14th, 2008
- Financial Markets Open on Sunday! - November 30th, 2008
Graziano Nanetti is an independent analyst and has years of experience in technical analysis for stocks and indexes. G Squared is born from an idea of Graziano Luciano and Graziano Nanetti, founders of G Squared.
Previously, Graziano Nanetti was the author of the financial blog RNE Trading. His blog expanded to include more detailed contents about markets and to publish the great material he received from Graziano Luciano.
Now, G Squared is aimed at pubblishing open minded financial articles about few major indexes (S&P500, S&P/MIB, Nasdaq100) belonging to financial international markets.
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