[livermore4ever]

Hi,

Before you read my Analysis you should take a first look to my S&P-500 updated chart at:
http://globalspecula...play;threadid=7

After the long term ascending support was broken in May, the S&P started to trade on a pattern that seems to be a Descending Channel.
This pattern is creating an interesting Trading Range on S&P, very large, but already with 3 downside contacts and 2 upside retractions.
Right now, the support level is on 1.080 and the resistance level on 1.143… this is more then 60 points range, and it’s giving nice position trading opportunities.

In the last downside reaction, S&P didn’t made lower lows, being a bit better then Nasdaq-100, and by so, it doesn’t necessary is on a downtrend for the 6 month time frame.
The moving average situation is quite curious, with the ema-50 declining, the ema-150 neutral and the ema-200 rising, not giving any specific signal for the short term… but confirming (for now) a bullish ema situation with all the 3 ema’s on the right spot.

Momentum has something to say… The DMI has triggered a first buying signal last week when crossing the 30 line. It also breakout it’s internal trend, showing some buying interest near the support levels.

By so, I think that we have some nice upside potential, I believe 1.143 could be the target for the next weeks, but everyone should be careful with the support levels (1.080), because on a descending channel, buying is always dangerous…

Best regards,