Tuesday, October 6, 2009

Market Observation

Here's the daily SPX 500 daily chart.  The SPX bounced perfect off the 50 day MA last week on Friday and held the linear uptrend line.  Stochastics is oversold and therefore has plenty of room to move up if it wants to.  If this pattern is correct, then this was a 4th wave pullback with another 5th wave move to new highs coming. 

In the very short term, the 'ke' pivots are 1040 and 1018 for support, and 1060 for the bulls.

Next, here's a 5 min chart of the SPX, it's potentially a bullish inverse H&S pattern.  The pattern is 40 points in height and would measure to about 1100.  The neckline is 1060.

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