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10/21/2003 Archived Entry: "S&P Intermediate term outlook."
The attached chart is the daily S&P E-Mini. The S&P looks heavy on the daily chart, so here is the downside picture to give us some context for a possible roll-over. The daily trend is just about to turn down, if it does we are in for a bit of a bearish period. I have marked four significant support levels. These support levels are valid as long as the October 15th high is not exceeded. There could be a lot of great short trades intraday before those levels are reached, but if the market comes close to them watch out for a bounce! Longer term swing traders may use those levels as profit-points to exit shorts. The 1030 support level is psychologically important, bulls will buy that level. If 1030 support breaks, traders will become more bearish. Looking at prior retracements the 1015/1018 support level is quite a normal pullback. But a retracement deeper than 1015 will make the markets look very week, bulls will begin to feel desperate.. Watch these levels in the coming weeks. Click to view attachment.
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