Tuesday 11 September 2012

S&P correcting, target still remains 1450-60

S&P is in a correction pattern after having made a top at 1438. This is most probably a wave 4. This means that it can still make a final upward move towards 1450-60 as part of the 5th wave of the impulsive move that started at 1397. 1424 is support for this 4th wave and during premarket the futures made  a low at that area. This does not mean that it canot be retested during normal trading hours. Important intermediate support still is the 1397 area where this impulsive move started. Stop for long positions should be that area. There is a small possibility that the impulsive move from 1397 has ended and that we are now in a wave 2 correction that could reach 1420-15. Concluding we are biased towards 1450.

Thank you for taking the time to read my post.

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