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by Austin Passamonte
Here's the near-term to midterm outlook for SPX.
Position: N/A
Austin Passamonte
Austin is a private trader who trades emini stock index futures intraday. He currently trades various futures markets from home in addition to managing a trader's educational forum
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TECHNICAL ANALYSIS
Can SPX Handle 1200?
10/27/09 03:53:09 PMby Austin Passamonte
Here's the near-term to midterm outlook for SPX.
Position: N/A
| The past 12 months have been one extreme ride for stock market indexes. From the epic crash of September–October 2008 through the grinding plod upward of 2009, it has been a year of market extremes. |
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| FIGURE 1: SPX, WEEKLY |
| Graphic provided by: TradeStation. |
| |
| The weekly chart view in Figure 1 shows a big inverted head & shoulders pattern: the crown at the 662 zone with neckline resistance around 944. Taking the sum of distance between crown and neckline = 282 index points' width. Adding that sum to the 944 breakout zone = 1226 as an upside price target to come. |
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| FIGURE 2: SPX, DAILY |
| Graphic provided by: TradeStation. |
| |
| In the near term, SPX has met a price projection of resistance around the 1090 level. Seven sessions in succession have found themselves stuck right there. Increasing volatility in the past days is a clear indication that price will push away soon ... up or down. See Figure 2. |
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| FIGURE 3: SPX, DAILY |
| Graphic provided by: TradeStation. |
| |
| If "up" is the resolution from here, next stops on the projection circuit would be 1130+ and then 1220+ zones. There is that 1200+ price objective again, a different measure but the same target. |
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| FIGURE 4: SPX, DAILY |
| Graphic provided by: TradeStation. |
| |
| One last look from a slightly different perspective: past seven sessions since the last breakout ascent have floundered sideways in a widening megaphone pattern (Figure 3). The subsequent break of this wedge, up or down, will confirm what comes next. Look for the closing bar outside this pattern for a strong sign of which way to go next; 1200 is possible, but a sharp pullback is equally probable. |
Austin is a private trader who trades emini stock index futures intraday. He currently trades various futures markets from home in addition to managing a trader's educational forum
| Title: | Individual Trader |
| Company: | CoiledMarkets.com |
| Address: | PO Box 633 |
| Naples, NY 14512 | |
| Website: | coiledmarkets.com/blog |
| E-mail address: | austinp44@yahoo.com |
Traders' Resource Links | |
| CoiledMarkets.com has not added any product or service information to TRADERS' RESOURCE. | |
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Date: 10/28/09Rank: 5Comment:
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