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S&P 500 Daily: Support and Resistance

Last weekend, we made the case that 1258 would be good resistance on the first go. While the market did reverse at 1256 and fall 35 pts, the powerful move up from 1221 was surprising. Last weeks 2nd level resistance (1296) becomes near term resistance to start the week. 1347 still looks like an important level of resistance longer term.

REPRINTED from 10/30/2011

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Andy’s Technical Commentary__________________________________________________________________________________________________

S&P 500 Daily: Support and Resistance
Due to another weekend away from home, this will be the only new slide for this update. The market did reverse strongly at 1296. The severity of the decline suggests the b-wave lower has become. 1264 looks like decent short term resistance as the 61.8% retrace of the decline. So far, the fall from 1296 is NOT impulsive looking, which is consistent with the b-wave theory. If this is a b-wave forming, it should be choppy/grinding move lower. I like the idea of being short S&P 500 at these levels, looking for a move down to near 1119. A break above 1264 would cause me to trim shorts. A break above 1296 would cause me to exit all shorts and a reevaluation.

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Andy’s Technical Commentary__________________________________________________________________________________________________

S&P 500 ~ Weekly Line on Close
Admittedly, the hard rally up has been a bit stronger than I would have imagined. If the highs are taken out, then this wave count will have to undergo a major recounting. Until then, this remains my best interepretation. I’m still expecting this “z” wave to be a contracting triangle which partially explains the powerful a-wave.

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REPRINTED from 10/30/2011

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Andy’s Technical Commentary__________________________________________________________________________________________________

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Wave Symbology "I" or "A" I or A <I>or <A> -I- or -A(I) or (A) "1“ or "a" 1 or a -1- or -a(1) or (a) [1] or [a] [.1] or [.a] = Grand Supercycle = Supercycle = Cycle = Primary = Intermediate = Minor = Minute = Minuette = Sub-minuette = Micro = Sub-Micro

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