The update today shows an overall picture of the SP 500 on a 60 minute chart. There are gaps shown in upper portion that are an island reversal pattern and bearish price action following.
Today is going to have a large gap down open. Price in globex is trading around the 1053 area which can be seen on the chart at the red arrow. It is also at the .618 retracement area. Watch to see how this holds as support. Rallies have been failing and leading to more downside.
The important low to watch is the 1006 low from early July.
For today watch if any rally back up to the 1061 - 1065 area. We may see a short term, intraday, sell setup in that area.
Overall this longer term picture looks as though more downside to come.

60 Minute SP 500 Chart

This entry was posted on Tuesday, August 24th, 2010 at 9:09 am and is filed under General. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.