SP/MIB: the nightmare will go on
Posted on Saturday, January 24th, 2009 | In Market CommentaryAnother bearish week has gone, as predicted, but it is not over.
This seems to be a new third bearish wave and for the next week it is highly probable that we will reach the first target at 16.200. Next bearish target is at 13.500 where this supposed third wave is equal to 1,618 times the first wave (labeled with “i of (5)” in my chart). But the S&P/MIB could find support at about 17.300 and in this case it could jump to 17.500, 17.950 or 18.400 at most. On the contrary, break of 17.300 could smash the index to the new deep bottoms suggested above. Now, we are in a sort of nowhere land, with no significant supports provided by past time charts. Only 16.200 could be a strong support, since here we have the completion of a corrective A-B-C pattern on weekly chart, started from 2000 tops, but beyond this level the next projection is 13.500, very far from here. Another possibility is that this fifth wave could develop as a final wedge, coiling down. In this case S&P/MIB should hold 17.300 and should go up to the area between 18.400 and 19.000. We will verify this best case scenario just in the beginning of next week. But beware that the wedge pattern is very rare and this is only a remote possibility. My technical indicators are still very bearish.
Next setup dates are 28th of January, 9th and 19th of February.
Bradley Siderograph setup dates are 23rd of January and 11/12th of February.
Humanitas, Felicitas et Libertas omnibus!
Last 5 posts by Graziano Nanetti
- SP/MIB: go down, nice and slow ... - February 17th, 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
- SP500: bull trapped? - December 6th, 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.
No recommendations, either expressed or implied, are being made to buy, sell, hold or short any of the mentioned stocks. No legal, tax or accounting advice is expressed or implied. Always contact your attorney, CPA, or tax advisor before acting on any legal or tax issues. StraightStocks.com is not responsible for the content, products, or services of any of the advertisers on this site. StraightStocks.com receives compensation from advertisers on this blog. Services and products referred to herein are trademarks, registered trademarks, servicemarks, and/or registered servicemarks of their respective trademark or servicemark owners.