Sunday, September 14, 2008

$SPX Update for 09.14.2008

S&P 500 INDEX - $SPX

Monthly chart shows index traded below the support level and the low of March 2008. No buy signal/pattern evident on this timeframe.

Weekly chart shows indecision between the bulls and the bears as they finished the weekly pretty much where they started. Look to next week's trading session to see which will be the next move. IF the bulls manage to gain traction to the upside, THEN look for higher low to provide a more bullish picture, otherwise expect more downside weakness.

Daily chart shows the bullish gartley butterfly played out, with the bulls taking the index right up to the .618 fib target before they were overcome by bears, who in turn took the index down to support right at the .886 fib level. The bulls managed to close index just slightly over the 8ema. Look to next week's trading session to see whether the bulls can gain enough traction to take the index decisively over the key LIS of the March 2008 low.

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