3 June 2013

SPX reached our first support which exceeded a few pts.  This support today was also the 200ma for the 60min. chart.  We mentioned last week that there are 3 supports to watch for and we should no look for a test of the lower triangular support line that was broken last week.  If this test proves to be a resistance then we would owe it to the 20ma (Bold Blue Dotted line).  An EW A=C pattern rest exactly at our 50% level around 1610 range.  But in the mean time, our trend still looks bearish.

Mid-Term: DOWN
Short-Term: DOWN

 

A breach of the green dotted line and last support shown on the chart above would suggest that the trend change is not a correction (abc), but a full trend change.