The SPX had the expected false breakout of the trading channel and is now about to reenter. Wave A up is now in place and we are in wave B down with a target area of 740-780 before wave C up can start heading for the 200 day MA at 960 roughly. If the SPX gives half back of the recent rally of 210 points it will be almost exactly down to the 50 day MA at 770 it will depend mostly on the stress test results early MAY if we even make a 61.8% retracement as they will paint a rosier picture than reality. Yesterdays leaked results were probably a test case what markets will make out of it although I basically think that yesterdays results are pretty accurate to reality. The 61.8 retracement would bring the SPX 130 points down towards the lower target zone at 740. This will happen in a short time window of 2-3 weeks but rather 2 weeks.
Tuesday, April 21, 2009
SPX tech outlook
The SPX had the expected false breakout of the trading channel and is now about to reenter. Wave A up is now in place and we are in wave B down with a target area of 740-780 before wave C up can start heading for the 200 day MA at 960 roughly. If the SPX gives half back of the recent rally of 210 points it will be almost exactly down to the 50 day MA at 770 it will depend mostly on the stress test results early MAY if we even make a 61.8% retracement as they will paint a rosier picture than reality. Yesterdays leaked results were probably a test case what markets will make out of it although I basically think that yesterdays results are pretty accurate to reality. The 61.8 retracement would bring the SPX 130 points down towards the lower target zone at 740. This will happen in a short time window of 2-3 weeks but rather 2 weeks.
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