S&P: Will the bears come back?

On Tuesday, the S&P 500 Index (CME:SPM14) ended at 1949 points. We see that the index is near the top of the bullish medium term channel as bullish sentiment is showing historically overbought high levels, leaving the index vulnerable to further declines.

Even yesterday the S&P 500 left a key bearish reversal and such technicals arguments strengthens the chances to see more sell-offs and go back to 1930 points and even 1875-1860 area, near the 61.8% Fibonacci throughout the last rally, so that and where the long term uptrend should be resumed.

If there is a direct break above 1968 points, the downward key will be avoided and we will suggest for further rallies towards more ambitious areas around 1975-1980 points and later towards the 2000 -2010 area. Let's see...
 

About the Author
Julian Yosovitch
Julian Yosovitch is a trader, and columnist for Ambito Fiinanciero (Argentina), Gestion (Peru), Saladeinversion.com, Inversion and Finanzas (Spain).
He holds a Bachelor of Business Administration and a Professor Master in Finance (UDESA). He is also a Capital Markets Specialist (UBA-IAMC) and Financial Markets Analyst - Ruarte´s Reports Trader. Follow his blogs here, and folow him on Twitter @julianyosovitch.
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