S&P 500 looks for its next move

August 11, 2014 • Reprints

After a strong rally for the S&P 500, it closed out the week at 1930 points.

The market has found strong support around 1900-1894 near the bottom zone of the bullish channel while the increase on Friday left a daily bullish reversal key.

In this case, as long as the 1894 level is not broken, we can still speculate with a stronger recovery back to 1940, and if that's hit, look to 1955, which I consider to be an important short-term resistance.

A break above those levels will enable new rallies that lead the market back to the previous maximum area at 1991 without rolling out a bullish continuation movement toward more ambitious front values.

Only with a direct break below 1894 will the bullish signals lead the market out of the bullish channel, leaving the S&P 500 vulnerable to extend losses back to  lower areas around 1865-1850 near the 200-day moving average.

http://www.futuresmag.com/2014/08/11/sp-500-looks-for-its-next-move