by admin
Calm Before Next Climb by Mike Paulenoff – Slope Of Hope with Tim Knight
8:58 pm in Index Futures, S&P 500 by admin
Another look at the support and resistance levels on S&P 500 index.
As @admin mentioned in an update couple days ago, we closed above the 200 day moving avergage on the S&P 500 index. The S&P 500 emini contract is also above its 200 day moving average. Though it is not visible on the chart below, the area of resistance is 1160-1170 level.
The S&P 500 emini contract is pressing towards yet another probe of key support along the 1100 level, which also doubles as the rising 200-day moving average at 1099.70. As long as that support area contains any forthcoming weakness, with an overshoot into the June 8 up-trendline at 1095, my pattern work will consider all the action since the June 15 high at 1111.50 to be a sideways rest-digestion period ahead of another upleg. If my work proves accurate, then we will look back on the past two sessions as a rest period rather than a serious pullback that worked off the overbought near-term conditions ahead of another powerful upleg. For that reason we are long the Ultra S&P500 ProShares NYSE: SSO in our model portfolio.
via Calm Before Next Climb by Mike Paulenoff – Slope Of Hope with Tim Knight.
