(By Michael Harris)For now it appears that 1358 points in the S&P 500 Index may turn to support and become the base for another attempt towards 1440 and then 1500. There are a few technical signs that point to this possible scenario although European debt concerns impose uncertainty in the medium-term.
On the above charts, the thick horizontal line is the support at 1358 that I believe will act as a base for another up move. It seems to me that the market is looking for a piece of good news to hold on to and squeeze shorts out. Trading near major support levels carries a lot of risk but also high potential reward. The past performance of any trading system or methodology is not necessarily indicative of future results. Read the full disclaimer here.
Disclosure: no relevant position at the time of this post.