October 2, 2012

S&P 500 Analysis after close

  • First chart is the daily time frame which shows immediate support and resistance lines.
  • Weekly chart shows price still inside an ascending channel. Stochastic is overbought but its still above 80% line which should favor bulls to resume the up move. Breaking below 80% line may give a bigger fall.
  • SPX Month chart shows bulls unable to close the candle above the wedge resistance line. Bulls need to make another attempt to move above the resistance line or face correction towards the support line shown in last chart.

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