S&P reached the 1650 neckline for another time yesterday and got rejected once again. Prices pulled back towards 1630, influenced by rumors regarding FED’s tapering. Volatility picks up when something like this hits the wires and mini crashes are becoming a common day-to-day characteristic. Nevertheless, prices managed to pull back up during the last trading hour and close the index at 1639. Another higher low(1623) was not broken and support was held again. It looks like the market is gathering power for an upward burst towards 1680,that will be triggered when 1650 breaks. If prices are going to revisit the 1650 resistance level, it will be broken. My feeling is that we will not see another rejection at that price level. If S&P manages to test this level again, it will also manage to break it upwards.
If prices however break below 1623, I believe that we will then going to test 1608-1600. If that level is broken downwards, then we will go towards 1580-70. Looking however at the daily chart, as shown below, I believe that the corrective wave from 1687 is most probably over and that we have already started a new upward wave towards 1680-1700.
As always, thank you for taking the time to read my new post.