Hello all,
this is a brief review and trading plan for the S&P500. As most of the time there is a direct relationship between Euro and S&P500 (especially during US session arbitraging), I thought it was a good idea to provide an update.
During last week the S&P500 index price kept moving higher according to the plan provided on February 3rd, 2013. Now before the grind higher will restart, I believe we need to see a larger retrace. The S&P500 index could indeed be at the beginning of a correction. US Dollar strength could push risk off with selling in the equity market.
Below are the two updated scenarios I see going forward (refer to the below picture):
Scenario 1. The grind higher continues only with a minor correction into the 1503 area for a continuation higher into the 1520 1st target.
Scenario 2. A larger correction would start if price slices through the 1499-1500 level. In that case we could see price reach the 1480 area. From this support area we could see risk back on and the start of a move into the 1530 area (1st target) and a continuation higher into the 1556 area (2nd target) into the Spring.
Please let me know what you think.
Trade safe.
this is a brief review and trading plan for the S&P500. As most of the time there is a direct relationship between Euro and S&P500 (especially during US session arbitraging), I thought it was a good idea to provide an update.
During last week the S&P500 index price kept moving higher according to the plan provided on February 3rd, 2013. Now before the grind higher will restart, I believe we need to see a larger retrace. The S&P500 index could indeed be at the beginning of a correction. US Dollar strength could push risk off with selling in the equity market.
Below are the two updated scenarios I see going forward (refer to the below picture):
Scenario 1. The grind higher continues only with a minor correction into the 1503 area for a continuation higher into the 1520 1st target.
Scenario 2. A larger correction would start if price slices through the 1499-1500 level. In that case we could see price reach the 1480 area. From this support area we could see risk back on and the start of a move into the 1530 area (1st target) and a continuation higher into the 1556 area (2nd target) into the Spring.
Please let me know what you think.
Trade safe.
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