Friday, July 22, 2011

S&P $SPX new levels on the downside

Let's update SPX levels, just in case we have Financial Armageddon next week.
Read my previous post about how to approach this event, as the latest breaking developments are going to put extra pressure on markets starting on Monday. Perception of no debt deal will give us an opportunity to trade a big SPX range. Use the following levels to trade against, whether short or looking to get long.

Levels as of close of trading on Fri. July 22:

1. 50 dsma @ 1311
2. Double Inverted H+S shoulder bottoms @ 1295 (huge pivot level for 2011)
3. 200 dsma @ 1281
4. Flat on the year @ 1257
5. 50 wsma @ 1255
6. Year low @ 1249
7. Support from 2010 former resistance @ 1220 - 1230 
8. 200 wema and trendline support from July low of 2009 @ 1187
9. 200 wsma @ 1161
10. Support from 2010 former resistance @ 1130
11. I do not think we get below 1130 :)

That is it folks. I hope this helps.

UPDATE July 27 @ 1:25 pm edt
1st target @ 1311 was reached at 10:30 am, SPX backtesting it as I type for possible double bottom intra-day.

Update July 29 @ 12:00 pm edt
2nd and 3rd targets @ 1295 and 1282 were reached at 9:46 am, SPX is going to backtest 50 dsma on possible debt ceiling resolution. An opportunity for yet another short, imho.

Update Aug 2 @ 8:20 pm edt
4th and 5th targets @ 1257 and 1255 were reached at close today. Very oversold condition has now developed. 200 dsma is now a formidable resistance on the upside.

Update Aug 3 @ 4:15 pm edt
6th target @ 1249 reached today

Update Aug 4 @ 4:15 pm edt
7th target @ 1220 - 1230 zone reached today, and a vacuum zone below really got sucked out down to 1200 on the close. WOW!

Update Aug 5 @ 10:55 am edt
8th target @ 1187 was reached and is the low of the day so far. Power of charts!
1 pm edt Just came within 7 points from target #9 @ 1161. The word "oversold" does not apply any more, this is a multi-day "crash" by all terms. One for the history books for sure.

Update Aug 8
10th target was met today. All targets have been hit. We are in a new bear market. 

No comments:

Post a Comment