The S&P 500 Index (SPX – 1,102.66) added nearly 9 points, or 0.8% on Friday, finishing atop the 1,100 level for the first time since June 21. The upward momentum of the market is excellent right now. There is no reason for us to fight the tape, you had better step aside if you don't want to follow the flow. If market hold 1110, we should start the second leg of this rally provided we also hold the second low of 1056.88, the target projection are 1085, 1097, 1110, 1117, 1129, 1149.
Base on the above projection, we have already broken 1085, 1097, 1110, as a result I predict the market will finish the second leg/third wave rally at 1129 or 1149. Also, we have to pay attention at 1113-1117 resistances. 1113.4 is 200 days moving average, 1115 is the 50% fib retractment level from 1220 high to 1010 low, 1117 is one of the short term projections of the current rally
I think market is going to pause at around 1113-1117, I may short it if all the technical indicator show extreme overbought and I can watch the market and day trade in front of my computer. However, if you are patient I will highly suggest you to wait until 1129-1149 where the successful rate will be much better because 1131 is June high and the second leg-third wave target and resistances probably will be at 1129-1149.
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