S&P bulls fight back
October 1, 2013
S&P more downside pressures expected towards 1660
October 4, 2013

Trapped in a trading range between 1680-1695, the S&P index will soon start a new trend either towards 1650 or 1720. Amidst concerns regarding the implications of a government shutdown, bears are expecting the index to break the support levels and challenge the longer term trend. On the other hand bulls are feeling comfortable as prices have taken an upward slope as shown in the chart below.

spx60M

Short term support is found at 1680-75 and short term resistance at 1695-1700. If prices manage to break below the short term support level, then we should anticipate heavy selling to push the index at least towards 1660 and most probably towards the pitchfork  support  at 1640. If support holds and prices break above the 1700 resistance, then a move towards 1715-20 at least should be expected.

spxD

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Alexandros Yfantis
Alexandros Yfantis
Fascinated by financial markets, studied International Securities Investment and Banking in the UK, works as a Portfolio Manager in Greece and runs a technical analysis website. Enjoys travelling and spending time with his family and preparing for the black belt in Korean Karate.