Sunday, February 7, 2010

S&P Buy signal

What did I write last week? "Look for resistance at 1100 and support at 1042". That's exactly what happened. The S&P hit 1100 on Tuesday and then fell to 1040 by Friday. Traders that bought the Monthly S1 pivot at 1040 last Friday are happy traders, since we had a 20 pt bounce at the close. This is also setting up a buy signal with the "Long legged doji" pattern last Friday. We need to see confirmation with an "UP" open on Monday. Look for support this week at 1038 and resistance at 1100 again(maybe 1106). If we don't get confirmation, then we could see 1018 on the S&P soon. Remember, my signals are short term(a few days to a few weeks), not long term buy and hope.