S&P500 Index Update

Just a quick up date on my thoughts about the S&P500.

Not much has changed, just more price data on the chart

Daily S&P500 blog

Unless we get some pretty hectic price movements I’d say that price will take us into next week still unclear as to likely direction.

The short-term moving averages have stalled and in a state of confusion – this always happens on decent sized corrections and at tops.  The longer term moving averages are still pointing UP. although that should change if price fell back and passed the Feb 2014 LOW.

If you had to draw a linear regression of price on the chart, it points upwards, We’ve a series of high highs and higher lows, although the last swing low (Dec 2013) has been exceeded – in Gann language the trend is now classed as down.

Indicators should be in the OB zone – this is not accurate as they can languish in this zone for weeks, but short-term tops should soon be in place – it is all down to the pullbacks that occur, until they happen I’m still in no-mans land with a preference for the long-side still.

And if you drew an arrow on the chart (not shown) it’s also pointing upwards.

At some point this market will reverse and yes all those factors will still be pointing upwards, which is WHY I’m still watching the short-term daily price bars and the pattern they’ll create.

Hang on, hang on – let the person at the back be heard (?) – Target for the low when it happens?  50% of the all-time high, which at present is 1850.84 (high) so a potential target for the ultimate low would be 925 points (S&P500)

Which is one reason I’m sceptical about the low @ 666 being taken out – anyway with time we will see just what happens.

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