Last Friday, Bernanke didn't hint an imminent stimulus, however the market got a rally and the 1404.64 level now becomes a support.
I guess that markets will continue the rise at least one more day before we may see a consolidation or a down day. An early confirmation signal to what I guess would be a positive bias of Europe markets seen before the US session open.
The bullish scenario will target the area 1415.40-1417.30 and I may expect a pullback middle way in the area 1411.85-1413.09 which however would offer a chance to add long positions.
The bearish scenario would target 1402.30-1404.64 if successful will go next down to 1397.00-1400.00.
SPX Intermediate Term
Looks bullish before a possible bearish ending with the following aspects:
- Most of time since 6/7/2012 the prices are above the MA20.
- The prices are in a rising channel (yellow).
- Bollinger bands are contracting, in this case may hint a spike up later on.
- Looks as in the forming of a Rising Wedge, which eventually will be bearish.
- The last target of bulls may be 1450.00 as the chart anticipate.
- Timing of the bearish reversal may be the end of September.
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