S&P came just 5 points from its all time high yesterday and did not manage to overcome it. The double top set up will be confirmed if the support in the 60m chart shown below, is broken. This will put in danger as prices could come back down to test even the intermediate term support at 1540-35 area.
Taking a closer look at the 10 minute chart, we observe that very short term support was broken yesterday. However we will have to wait and see if the upward sloping trend channel is broken. This channel starts from 1536 and contains the entire rise…until now? At the open we will now if prices are heading for a correction.
This expected correction, could however be short lived if support at 1570-75 area holds. Our view remains in favor in covering long positions and being cautious. Short positions should better be enabled with downward breaks of support levels with stops close by, as we have seen this play many times….sharp declines and the market grinding higher and higher….
Our longer term view remains the same and we think the market will make a correction soon. Better safe than sorry.
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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.