Friday, June 25, 2010
S&P Trying to Get Through 1070. (Notes for the Very Short Term)
The S&P has a minor support shelf at the 1070 level and it's having a hard time breaking through it at the moment. The decline has been far from jaw-dropping as I'd expect from a wave 3 at multiple degrees so I'm cautiously bearish at this point. I just wanted to point out the 1070 level since a break through it should lead to a quick move to the 1040 area. A break through 1040 should lead to an acceleration of aggressive selling well into the 900s. If the S&P fails to break below 1070, the bulls may get emboldened and push the index to the 1100-1110 area to complete the flat correction I mentioned yesterday. But from there, we should get more selling to new lows and 1070 should be nothing more than a speed bump for a market headed much much lower. 1131 remains key for the bears to maintain.
PLEASE NOTE: THIS IS JUST AN ANALYSIS BLOG AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. THE DATA HERE IS MERELY AN EXPRESSED OPINION. TRADE AT YOUR OWN RISK.