Technicals | Nov 16 2012
The SP or E-mini is a futures contract on the US broad market S&P 500 index. Since the begin of October it has fallen approximately 100 points, and it is now sitting at 1354 — near the first key level of support the TechWizard has identified (1350). Three more support levels are identified on the above chart, being 1320, 1300 and 1265.
The price action is starting to accelerate to the downside and the Wiz notes a lot of indicators are getting way oversold. Yet they are staying oversold, which is very bearish.
The 20 MA (20-day moving average) white line has crossed the 50 MA yellow line and now the 20 MA is touching the 100 MA black line, so this correction has a lot further to go.
The Wiz believes that interim support will manifest between the 1350-1320 levels after which we should see a bounce, but then then a resumption of the down-trend to test 1265 by Jan 2013.
The TechWizard is the pseudonym of Scott Morrison, whose experience in financial markets exceeds twenty years. Morrison operates his own website nowadays at www.techwizard.com.au. All views expressed are the TechWizard's, not FNArena's (see our disclaimer).
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