SPX update

The SPX daily chart broke out of a wedge formation marking the top which creates a short term target of 1240-50 which is also the 200 MA. The next step though is to break the 1295-1300 support. It is very likely though for the next days as we will see a major clash pattern around the coming weekend with a heliocentric Venus /Saturn opposition. So far the correction is very untypical to prior corrections but that is likely due to the fact that we are turning trends which is always a different ball game then a regular correction within a trend. Keep selling rallies for the time being as a monthly reversal is in the making and early June might see a bounce up before resuming the downtrend later. Down to 1250 is just the initial drop on a bigger scale but for the next  4 weeks that might mark the low of the trading range and it is possible that we trade back up to 1350 from that level again but that we can see rather once we are there and see how some parameters have turned out.

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~ by behindthematrix on May 25, 2011.

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