S&P 500 Daily: Support and Resistance

Short term support for bulls lies at 1191. If that level gives way, there is no real support until 1121. As noted earlier, the 1258 area is going to be strong resistance. Above there, 1296 should also be good resistance--that level was an important pivot during the several month congestive range between March and July.

REPRINTED from 10/23/2011

Andys Technical Commentary__________________________________________________________________________________________________

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.

Andys 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. Im still expecting this z wave to be a contracting triangle which partially explains the powerful a-wave.

(B)
a?

w
d e

x
a c e

(C)

(A)

Andys Technical Commentary__________________________________________________________________________________________________

S&P 500 ~ Alternate Long Term Bullish Wave Count

If the S&P500 were to ever close above 1365, this would become the preferred count for Wave (B). We would be facing a diametric that would take the shape highlighted below. Because the c was shorter than a, the g wave would be shorter than e. The implications would be a rally for at least another year. So, there is MUCH at e stake in the next few weeks.

(B)
g

a d

(A)

Andys Technical Commentary__________________________________________________________________________________________________

S&P 500 ~ 60 Min. Cash

The powerful move up is difficult to count because of the lack of any meaningful pullback. This would be my best interpretation for any readers who like to count out small scale moves..

-yThis wasnt topping action on Friday. Im expecting a higher high to start the week.

(c)

(a)

-w-

(b)

(d)

(b)

(a)

(c)

(e)

-x-

Andys Technical Commentary__________________________________________________________________________________________________

PLEASE NOTE THAT THERE IS ADDITIONAL INTRA-WEEK AND INTRADAY DISCUSSION ON TECHNICAL ANALYSIS AND TRADING AT TRADERS-ANONYMOUS.BLOGSPOT.COM

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

DISCLAIMER WARNING DISCLAIMER WARNING DISCLAIMER

This report should not be interpreted as investment advice of any kind. This report is technical commentary only. The author is NOT representing himself as a CTA or CFA or Investment/Trading Advisor of any kind. This merely reflects the authors interpretation of technical analysis. The author may or may not trade in the markets discussed. The author may hold positions opposite of what may by inferred by this report. The information contained in this commentary is taken from sources the author believes to be reliable, but it is not guaranteed by the author as to the accuracy or completeness thereof and is sent to you for information purposes only. Commodity trading involves risk and is not for everyone. Here is what the Commodity Futures Trading Commission (CFTC) has said about futures trading: Trading commodity futures and options is not for everyone. IT IS A VOLATILE, COMPLEX AND RISKY BUSINESS. Before you invest any money in futures or options contracts, you should consider your financial experience, goals and financial resources, and know how much you can afford to lose above and beyond your initial payment to a broker. You should understand commodity futures and options contracts and your obligations in entering into those contracts. You should understand your exposure to risk and other aspects of trading by thoroughly reviewing the risk disclosure documents your broker is required to give you.