SPX has its best Month, hovering 7% rally for month of June. After hitting 1365, we somewhat expected for a longer pause for some reasons:
1. 70% retracement of entire May drop
2. Resistance of downtrend resistance.
We might adjust the downtrend channcel from 1422 to 1365, and if the market doesnt hold on that 1354 level. We might see the short term uptrend support, which is at 1334.
Any case where market drops 1334.. It's back to bearish mode.
Elliot wave analysis suggest that this is probably a minor wave iv correction, and a rally back to 1365 is highly possible.
Short Term: Uptrend. Stay near the 1334 support
Medium Term: Downtrend channel could still be intact
Long Term: Uptrend since 2009 still intact.
Looking at Germany, our dependent market bellwether for Europe, its possibly showing that we have already broken out from the Medium Term downtrend, and short term uptrend is likely high, thus the drop is just a correction.
Let us see in a few days if Germany revisit 6270-6300 to find its Short Term Uptrend support and channel lines.
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