The cash S&P500 formed another downtrending day on Wednesday, this time on higher volume. Short-term, the question now is whether the decline from Monday’s high is over.
We made low yesterday in the support area identified between 1273-1276 (which included the short moving average) and then prices firmed. Let’s see if the bulls can use this support area as a springboard to bounce prices higher.
The Wilder Directional Movement System is long from 1297.85 while the Parabolic SAR is at 1274.86. A price drop below that level (which would also be below the current support line at 1276.77) is not expected but would put my under-development trading system in a short position.
At this point I personally believe the trend remains up from the July 15 low. If a new bounce has started then we first have to clear old overhead resistance between 1289 and 1293. After that there is weak resistance at 1298 and better resistance from 1304-1307. As you can see the bulls are going to have to work hard to get above Monday’s high. If they do then the first target is at 1319-1326.
We made low yesterday in the support area identified between 1273-1276 (which included the short moving average) and then prices firmed. Let’s see if the bulls can use this support area as a springboard to bounce prices higher.
The Wilder Directional Movement System is long from 1297.85 while the Parabolic SAR is at 1274.86. A price drop below that level (which would also be below the current support line at 1276.77) is not expected but would put my under-development trading system in a short position.
At this point I personally believe the trend remains up from the July 15 low. If a new bounce has started then we first have to clear old overhead resistance between 1289 and 1293. After that there is weak resistance at 1298 and better resistance from 1304-1307. As you can see the bulls are going to have to work hard to get above Monday’s high. If they do then the first target is at 1319-1326.
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