Sunday, August 29, 2010

The wild ride continues

The S&P last week, went down to 1040, the old support level from last June. This month, the S&P's & Dow Jones high was on the New Moon and the low(so far) was on the Full Moon. As you can see on the chart above, 1040 is the Yearly S1 pivot on the S&P emini futures September contract. Also, it is making an inverted head and shoulders pattern at 1040. That's the line in the sand. This week I'm looking for resistance at 1076(20dma) - 1085(weekly R1 pivot and 50dma) and support at the weekly S1 pivot @ 1040. This week my plan is to buy pullbacks as long as we stay above 1060(Weekly pivot). If 1040 breaks down then look for support at the 400/500dma at 1010-1020.