S&P Update

By November 11, 2012 Market Analysis No Comments

Historically stock markets start rising after election. This time the rally did not come. May be now they are waiting for Santa to arrive little early.

Anyone who trades stock know that 1370 is the support for S&P. S&P hit the low of 1373 on Friday and closed at 1379.85. Now what is next? There is a solar eclipse on November 13th and market could start moving up as it has done before.

Markets or stocks have a tendency to give fake signal. What I mean with respect to S&P is that S&P could fall for another two days only to find support at 1357-1359 (based on drawing the angle line) and then start rising upward for the year-end rally.

The resistance above is 1415-1422 and then there are more resistances to the upside. In case S&P drops to 1357-1359 then the resistance for S&P would be 1370-1383.

We will know how it goes this week. If there is an important update during the week I would send a short note.

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