Wednesday’s massive upside reversal suggested strongly that last week’s pivot low near the 1040 level in the S&P 500 index may have been the bottom. Money Flow measure is also indicating a weak bullish signal. This suggested that over the next couple of days, traders should expect at least a retest of major resistance near the 1100 level.
trading pattern on the S&P 500 index suggests that short-term condition is ripe for some sort of pullback consolidations. Expect the index to trend lower towards the 1070 area in the coming days.
although a majority of short-term technical indicators are still pointing up, the current overbought condition had raised the odds for a short-term pullback. So we shouldn’t expect much more upside without at least some consolidations first.
the S&P 500 index is now short-term overbought as it faces key overhead resistance. This increases the probability that the index will churn around current level, although it may lead to a sharp retreat.
the Standard & Poor’s 500 Index failed in its third attempt to take out the formidable point of resistance near 1105. Staying below that level might herald more losses.
