Wednesday, December 8, 2010

S&P 500

Pivot Points for Dec. 8,2010
R3 1246.85
R2 1239.15
R1 1231.45
PIVOT 1227.35
S1 1219.65
S2 1215.55
S3 1207.85

The possibility of an intermediate top will increase if 1200 is broken in the cash market. A break of 1173 (especially on a closing basis) would complete the formation of the pivot point.
  • The center tine of the Andrew's Pitchfork should act as diagonal resistance on the daily chart. (top)
  • The lower tine will be near 1200 over the next few sessions--diagonal support should be expected.
  • Lower Bollinger Band is at approx. 1173. Since this is the last pivot point as well, strong support should be anticipated.

  • Upper tine of APF held prices back on Tuesday. Selling at the close suggests that the lower BB may be tested which is near 1214-1216.
  • 1200 represents the 50% level of the November decline. Diagonal support from the hourly APF should be expected.

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