Get set ready for the possible final rally if any for the year. Call it a Dead Cat bounce or a Relief rally post US elections or a Santa rally (possible early vacations for fund houses) ending the year – whatever! The point is S&P 500 can possibly jump around 5% from this point on wards before a big heavy crash courtesy Fiscal Cliff and Greece woes!
The chart below is of S&P 500 on 4-hourly basis. The chart is self explanatory.
1370 is a 50% Fibonacci retracement of the move from June, 2012 low to September, 2012 high. Also, its a 100% Fibonacci expansion of ABC move. 1370 being a very important level to go long for next 2 weeks. Initially it might find some resistance around 1410 levels. But once it breaks it, 1440-50 is on the cards.
Now it’s your turn…..
Feel free to share your experience and thoughts in the comments area.
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