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Aug 18, 2014
S&P500: Use Friday's high and low to mark next direction
FXStreet (Bali) - According to Chris Capre, Founder at 2ndSkies, traders should use Friday's high and low in the SP500 to mark the next direction intra-day.
Key Quotes
"Closing bullish for the last 4 of 6 trading days, the S&P 500 has formed another V-bottom rejection, which I'm sure is making bears nervous and perhaps ready to capitulate. To close last week, the US index formed a with trend pin bar, but this is in front of heavy resistance above."
"For now, use Friday's high and low to mark your next direction intra-day. If we get a break above the highs, and the risk off sentiment weakens, then the bulls will keep pushing, trying to take out 1965, and gun for the resistance zone around 1986."
"However if the short term support at 1940 fails, then we could see a round-trip back to 1900, which would only embolden the bears, for it would mark the first major LH (lower high) in the never ending uptrend.
Key Quotes
"Closing bullish for the last 4 of 6 trading days, the S&P 500 has formed another V-bottom rejection, which I'm sure is making bears nervous and perhaps ready to capitulate. To close last week, the US index formed a with trend pin bar, but this is in front of heavy resistance above."
"For now, use Friday's high and low to mark your next direction intra-day. If we get a break above the highs, and the risk off sentiment weakens, then the bulls will keep pushing, trying to take out 1965, and gun for the resistance zone around 1986."
"However if the short term support at 1940 fails, then we could see a round-trip back to 1900, which would only embolden the bears, for it would mark the first major LH (lower high) in the never ending uptrend.