SPX technical outlook for week 22nd Sep

SPX had the anticipated low produced by an exogen manipulation but in any other case we would have crashed. Indicators are supporting some more follow through with a target zone of 1300 – 40 within 2-4 weeks. Expect this week to stay in the 1220 – 1275 range though after this impulsive short covering wave and all the buy back announcements this morning we need a pullback short term to bolster the upside momentum. The support from the financials for the upside will be very limited from here since the earnings momentum going forward is systenatically in a negativ bias and XBD has had a huge run already. Though a 160 level is possible and 150 will be seen within the next weeks. Sentiment readings are quite oversold and need, will help to hold up the market respectively push it a bit higher over time. The window dressing season is close and funds will push markets as high as they get them with this momentum in their back since they have higher cash holdings. Basically pullbacks to 1220/25 are buying opportunities for short term trader – for investors reaching 1300 and above is a selling opportunity but that we might see next week with the window dressing rather.

Astrologically Merkur retrogade starts in 2 days and we have already confusing information pouring through the media which claim loosers as hero’s and I am afraid it will intensify going forward. The earnings season ahead might not be very helpful though for the bullcamp .


~ by behindthematrix on September 22, 2008.

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