Wednesday, August 18, 2010

S&P500 Technical Analysis Base On The Elliott Wave Theory (Part-4.III)

S&P500 Technical Analysis Chart:
Last weekend I said "I'm looking for move lower to 1070" and S&P500 just did that on Monday S&P500 tanked to 1070 and we got the bounce. Now we have to wait to see if this is a dead cat bounce or we are making the next leg up. As you see in the chart we could make a new up trend channel, (see the chart in dashed orange line). what i like to see before make any conclusion would be a strong rally and break the 1131. At this point I give 45% chance to rally to 1115 then S&P500 should roll over. Please note we must be open to possibility of rally higher, but it would be very unlikely.
I give 55% chance to move lower with in next 2 weeks. what you need to pay attention to the violation of 1070 and 1056 levels. If S&P500 tanks below 1040, we should visit 950 in no time.