Monday, April 16, 2012

S&P 1340 line in the sand

It's opex week and we should see big moves up and down going into Friday's expiration. Last week the S&P went from the monthly S1 pivot point to the monthly pivot point. Pivot power! As long as the S&P stays below the 20 day moving average at 1400(1398), I will remain bearish. We should pin 1350(1353 gap) and even possibly pin 1400 this week. But the line in the sand will be the March lows at 1340(1343 gap). Support below that line is 1280-1310. A 10% correction would bring the S&P down to 1278. On the chart above, there is a lot of support down there(monthly S3 pivot, 200 day and weekly 50). I still feel that the high for this year is in, and we should see the low of the year in mid December, per the 2012 Bradley Model.