Tuesday, November 1, 2011

S&P 500 ~ EOD Update ~ 1 November 2011

Ping Pong: The market opened at the lower end of the support zone at 1220 and bounced to 1233 from there. By noon the SPX closed the gap at 1215 and then rallied again to 1233. By the end of the day we were back near the lows and closed at 1218.

As mentioned earlier today wave (B) probably ended at 1293 last week and we're in wave 1 of (C) now. I'm not convinced yet because late October to December is usually bullish. So, this could be only a correction. I think 1190ish has to hold though for the bullish scenario. So, if we break below 1190ish wave (C) is very likely.

Support levels are at 1215-20 and 1190ish. Resistances areas are at 1230-34, 1253 and 1285.