S&P 500 60 Min: Wave Discussion

REPRINTED from 11/20/2011

HEAD -c-eRight Shoulder

a
-gLeft Shoulder -a-f-d-a-? -b-

1154=Head and Shoulder Target

This is the best interpretation of the wave up from the 1075 low--that we have witnessed a diametric corrective a-wave which concluded at 1260. Its interesting to note the presence of a short term head and shoulder pattern--admittedly, its a little messy. The target of the H&S would be 1154, which would be quite close to the 61.8% retrace the wider price range (1159). So, maybe it would be prudent to take some shorts off into this area (1154-1160)

Andys Technical Commentary__________________________________________________________________________________________________

S&P 500 60 Min: Weekly Support and Resistance

REPRINTED from 11/20/2011

1260 level appeared to concluded with a smaller triangle, thus the thrusting feel lower. Markets that thrust out of triangle should not see any deep retracements until the next wave, of the same degree, concludes. So, 1243/1260 are first and second levels of resistance for the week ahead, but it would be surprising to see a bounce back anywhere near that level. I am lowering my stops on short positions to 1260--a break above 1260 would cause me to exit all shorts. In the meantime, the market appears destined for a test of 1154.

Andys Technical Commentary__________________________________________________________________________________________________

S&P 500 Daily: Wave Discussion

In last weeks discussion we said: the market appears destined for a test of 1154. That has essentially come to pass with the S&P500 ticking a low of 1158.67. The market is now at a difficult position to judgeit has achieved some minimum downside targets and is very oversold. Therefore, its almost tempting to buy this thing for a shorter term trade; however, it has shown no signs of bottoming action. The best bet is for b shorter term traders to cover current shorts d and wait to see if there are any signs of a y bounce. Longer term investors should have been out of this market long ago

a
1260

c -b-?

-a-?

Its impossible to know what shape this current b-wave is going to take. Presented here is an idealized b-wave that should take twice as long as the a-wave.

-c-? b
1075

Andys Technical Commentary__________________________________________________________________________________________________

S&P 500 120 Min: Weekly Support and Resistance

The S&P 500 stopped right in front of last weeks support level of 1254. The only near term support is the 61.8% retrace at 1158. If the market does bounce at 1158 exactly, it increases the chance its a false bottom at 61.8%. Markets that reverse at that precise of a retracement can rarely be trusted. Shorter term traders that want to press their bets should consider 1183 for stop loss strategiesthe 23.6% of the most recent decline. Classic chart resistance lies at 1216.

Andys Technical Commentary__________________________________________________________________________________________________

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Wave Symbology "I" or "A" I or A <I>or <A> -I- or -A(I) or (A) "1 or "a" 1 or a -1- or -a(1) or (a) [1] or [a] [.1] or [.a] = Grand Supercycle = Supercycle = Cycle = Primary = Intermediate = Minor = Minute = Minuette = Sub-minuette = Micro = Sub-Micro

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