Monday, February 28, 2011

S&P 500 ~ Pre-Market Warm-Up ~ 28 February 2011

The reached the low 1320's on Friday afternoon which was my target for a potential wave [ii] top.

As said though, I'm only bearish if we get a daily close below the 1300ish level, I'd like to revise that level to 1290.
Above 1325 (daily close) we should see new highs - preferred target area is still the 1360ish area.

I'm sure you had a look at the daily chart over the weekend. It's interesting that in log scale the support line has been breached and in arithmetic scale the support line held:

You probably find this chart on bull blogs...

...and this one on bear blogs... : )

As you can see I'm not sure which way the market is going. Futures are up at ES 1325 right now though, so it looks quite bullish at the moment. Additionally, March starts tomorrow and the first day of the month has recently been (very) bullish. But may be bears take the bulls by surprise and break below 1300 again. ; )

Have a nice week!