Monday, October 25, 2010

S&P500 important resistances and supports in fall of 2010

S&P500 broke the 1184 resistance level. Pay attention to 1194, if S&P500 could stays above it for a couple days, it would rally for 1220 level. I anticipating some selling pressure at 1194, lets see if big institutions want to inflate the bubble more!
I'm going to stay in bear camp, I think the risk is to the down side. This is nothing more than asset bubble that is based on speculation on second round of quantitative easing (QE2).

On long term out look, it is critical for market to stay above 1194 by Oct 30th. If S&P500 fails to get above 1220 by end of this year; it would be very bearish.

R1: 1194
R2: 1200
R3: 1220

S1: 1165
S2: 1150
S3: 1130