Thursday, March 26, 2009

How much S&P500 rally left?

Have not had much time today to do detailed analysis (just came home), but here is what I think will happen:

/ES will close tomorrow under 825.75, will spend next few days in between two red trendlines or will retreat to 801.50 area, and in April "trending up" will follow (it is not necessary straight way up, it is just that it will "drift higher", anyhow - as of now it is pure speculation - no proof of having trend up exists yet).

Still there is a danger that if in the next few days /es will dip below 801.50 on daily close and stay there for 2 consecutive days - rally will give up substantial part of recent gains (it is very unlikely from my point of view, but it pays to have all option open)


For tomorrow morning most likely scenario will be "short 1:20AM