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October 14, 2005
SPX from the TD Trader Daily Swing
On the daily chart, the triangle support break and move below 1200 rule the roost. The index has become oversold and shows signs of firmness with a doji yesterday. This could lead to an oversold bounce back to broken support around 1200-1210.
The 60 minute chart echoes the sentiments of the daily chart. The index declined over 60 points without a bounce and is ripe for a retracement or a consolidation. For potential upside targets, I am looking at broken support the normal retracements (38%, 50% and 62%). A 50% retracement of the October decline would extend to around 1203. In addition, there is support between 1200 and 1210 from the September lows. Together, these make for a resistance zone around 1200-1210 and I would expect a rally to fail in this area.
In the TD Trader Daily Swing commentary (click here), I have been short-term bearish since 5-Oct (1209 SPX)
Posted by Arthur B. Hill at October 14, 2005 04:37 AM