SPX fear is here, but bulls still in control

DAX testing important resistance levels
July 8, 2013
Αλλαγή τάσης στο ΧΑ ή απλά άλλη μία αντίδραση;
July 10, 2013

SPX continued higher yesterday with no signs of reversing down. Prices were supported and reached our targets from 1625. The higher the index now goes, the less chances for another steep correction similar to 1687-1560. Many still fear the possibility that only one leg of the downward correction is over. Prices however have shown strength and the rise from 1560 has an pattern reinforcing our view for new highs. 1600 is critical support for the intermediate term trend. Prices will find resistance at 1655 and could pull back for a small 38% correction. But I give more chances for the upside scenario with new all time highs ahead.

As shown in the one hour chart below, the price pattern of higher highs and higher lows supports our bullish view and the upward trend that is in command. Bears will at least need to break below 1604 for the short-term bullish scenario to be in danger. As long as prices are above that level we remain intermediate to longer term bullish with targets near 1700 and higher.

spx60M

Many have asked for the longer term Elliott wave count of my choice in SPX. Although the following chart shows my favorite wave count from 2009, I believe that trading should not be associated with long-term views on the markets. Our psychological endurance to market noise is not an ally when it comes to trade long-term wave counts that are associated with huge stop losses and equally possible alternative wave scenarios.

spx

Opportunities to make profitable trades are plentiful in the markets and what is needed is patience, a system and a clear head. SPX is one of our focus markets but not the only one. Feel free to ask for one week free trial and see for yourself the value our analysis adds to your trading. See our performance for yourself at our PREMIUM SERVICES page.

As always, thank you for taking the time to read my new post.

impulse-wave-rules

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.