Thursday, December 2, 2010

S&P500 Technical Analysis (12/02/2010)

S&P500 Technical Analysis Chart:
I'm looking for a pull back to 1211. There are 2 scenarios could come to play:

1) Continuation: S&P500 could continue to move higher with out any pull back; it could take out the 1228 resistance level and shoots higher. I give 10%chance to this scenario.

2) "U" shape move: market could tanks to 1211 then by end of the day, S&P500 rallies hard and gets above 1221.53 it would be very positive. I give 80% chance to this scenario.

Please note there is 10% chance that S&P500 breaks 1204 support level. if S&P500 violates 1204 it mean last 2 days move was just a short-squeeze.

These are Supports and Resistance levels:

R1:1228 (MAJOR)
R2: 1232

S2:1204 (MAJOR)