Thursday 19 April 2012

S&P will soon make a big move


 Good day to all. S&P rises with overlapping wave formation from last weeks lows. I believe this move can end near the pitchfork resistance and a new move towards 1340 to start. Intraday levels of 1380 spot and 1362 are important. To achieve 1340 these levels should break impulsively. Until then we can first see 1400. European auctions today could affect and give thrust to the markets either way. The bullish scenario involves a couple of 1-2s and this index will have to start a thrust of a 3rd wave above 1400-1410. Long stops should be the same levels as mentioned above.


Greek FTASE20 may have made an impulsive move upwards with increased volume but we have to be cautious. Stars in my volume chart point that something similar happened a month ago but the market did not manage to continue its rise. What if this rise is again corrective? Then new lows will be seen soon. That is why entering long near stops and in down days is preferred and not when market rallies. I'm still confident that we are near an intermediate term bottom or in the process of finishing this bottom in greek stocks. I personally try to enter only 1/4 of my cash near stops or supports and increase position if resistances are taken.

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