Technicals | Sep 23 2013
After calling the rally in the S&P 500 futures two weeks ago, the TechWizard thinks we are again at a critical level. The chart is showing triple-top overhead resistance. If the rally is to continue price action has to punch above this overhead resistance line, the Wiz suggests, and shoot towards 1800…in a hurry…or a decent pullback is in order.
If we switch to the weekly chart, the MACD and price action are showing clear divergence, which favours a pullback. But the Wizard wouldn’t use that as a stand-alone sell signal as he has seen such divergence before many times when the price action has still pushed higher.
The Wizard does suggest, nevertheless, any pullback would only present another buying opportunity and traders should be ready to jump back onboard for the Christmas rally ahead.
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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