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Is the next leg up for the S&P?

Apr. 12, 2011 5:55 PM ETSPY
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Seeking Alpha Analyst Since 2010

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Is this the dip that we consolidate down here before the next leg up?

The previous analysis from Apr 4th S&P chart called clearly showed the support levels to watch on this move.

We saw a clean break below the uptrend and  failure to make a meaningful close above the blue horizontal resistance. The S&P was range bound for a few sessions, but this week we made a clear break for the downside.

In the stock market today we  saw a push lower that put us the S&P right at the green support levels indicated. For a time it looked like todays sell off may have been the bottom, but a weak close could mean we might need a bit more consolidation here before we go for a bounce higher.

The ES futures managed to climb from the lows of 1305 all they way to the overnight resistance at 1314. However, at 15:20 a seller hit the market, knocking internals down and reversing the afternoon rally to close the day at 1308.

On the hourly chart, elliot wavers could be looking at this dip as a wave 4 down, if they are right, then we are getting ready to put in a final wave 5 higher.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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