S&P correcting the recent declines and we have see this trade higher to 1163 just
over the short term 61.8 Fib level of 1160. 60 min charts have reached our overbought
target and the S&P should now begin to unwind this scenario and come
lower over the next few sessions.Back below 1155 is the first clue, and a loss of this support will see the market com
under increasing pressure, leaving the way clear for further weakness down to
1140/38 to start with. Short term traders may be will to take profits at these lower
levels. We would still stick with the med term bearish view, and be sellers below
1138. We lose this support an we should come lower with 1104/1102 once more in
our target zone.If above 1164 there is scope for further upticks with 1174 then the objective. We
are sellers here, keeping stops above 1179.
Dow Jones mini:
Dow shot higher as hoped, through 10955/72 and has so far stretched to 11061.
We are starting to run out of steam but that does not mean we cannot push a little higher on this bear market bounce back. We will have to get above 11053/61 however for a chance to test 11090. If we can continue higher we could stretch as far as 11176/96. However this should be enough on the upside now for this correction to the down trend so ensure to take profits on longs and attempt shorts here.
We have good support in the 10972/55 band which may hold a slide today but if we break lower look for 10907/00 and perhaps 10868/58. Only a break below 10820 then keeps the pressure on the downside for 10775.