S&P has finally reached its october highs as we expected in our previous post (29th of November). It remains to be seen if it will first make a corrective pull back towards 1460-40 area or will it go directly to 1485-95 area. Our intraday chart shows how much fragile this price level is. As shown below, support is found in 1468-72 area. If this level is broken, then prices could fall as low as 1452 and or 1440.
Even if this pull back occurs, prices are expected to continue higher and why not test all time highs. The critical level that will influence the trend over the coming months is 1400. The area between 1400-20 is an important intermediate term support level.
Breaking the october highs signals the potential to retake 1500 and why not make new all time highs. have the upper hand for the time being and specially above 1400. on the other hand it seems they have to battle against strong financial earnings and the January effect. Short positions only below 1468 with tight stop-loss. Otherwise it should be considered only below 1400-20 support.
As always, thank you for taking the time to catch up on my thinking.
A term used to describe a trader who is expects that a particular asset – be it a commodity, currency or product – to rise in value. The opposite of a ‘bear’.
The idea is that bulls attack by bending their heads and poking their opponents upwards with their horns, symbolising the fact that they are buyers, driving prices up.
Beliefs held by the aforementioned ‘bulls’ of the trading world, are described as bullish. Characterised by a generally optimistic outlook on the state of a given asset, a bullish outlook would suggest that a rise in value is imminent. Opposite of bearish.
A term used to describe a trader (bear) who is expects that a particular asset – be it a commodity, currency or product – to fall in value. The opposite of a ‘bull’.
The idea is that bears attack by getting up on their hind legs and striking their opponents down with their paws, symbolising the fact that they are sellers driving prices down.
Beliefs held by the aforementioned ‘bears’ of the trading world, are described as bearish. Characterised by a generally pessimistic outlook on the state of a given asset, a bearish outlook would suggest that a fall in value is imminent. Opposite of bullish.