Thursday, April 4, 2013

SP500 in the short term

As you can see the SP500 have reach the major Resistence mention the 5th of March. After, it has been moving sideways between higher highs and making some noise in the down side.

The key feature we have to follow in every analysis it´s when it´s the right time to be short or long or when it´s time of selling our long positions.

Now we have to think where the market comes from..... below 670 points in March'09. Now we must be conservative and think that the best portion of the move have well taking place, so it´s not moment no enter any long positions now, and just protect the ones we have. Obviously this it´s quite general, because in any market move there will be stocks that move against the main trend.

As long as the red support line holds the price we can continue with the longs positions, but be aware that price it´s looking that at any time it will close below that level 1545 and will be confirmed with a close below 1540.



In that case price, had try to hold in three differente support (green, brown and red), from minor to major importance.

Absolutely the red zone mark the most important support for the trend that start in October'11 it´s in the lower band of the bullish channel, Around the 1.440 level.

The brown support zone marks the previous low and had held before the new highs.

In case of new highs, plausible option, there is a resistence in the 1580-1590 area. I don´t belive we will reach the 1.600 without a quite significant down move.


I hope you find interesting this post and if you like it don´t forget to share it. Thanks

Take Care, Be Smart and use Stop Loss in every entry.

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