Way of the SPX 500 - 101309
It's that time again when some "analysts" assume the role of the "good and the bad " and try to influence the Market / stock when they believe it has arrived at a vulnerable "turning point". I may have a bias in that I don't believe the "rally" is over.
That aside, a good example, in my opinion. is the recent efforts by several analysts with GS whose price action has mirrored the SPX 500. It, like the SPX, appears to have reached a terminal point of the "rally". So out come the analysts - on the 6th and 7th of October we had upgrades from M.Mayo [outperform from under perform ] and Deutsche Bank [ BUY ] respectively. Then today M. Whitney issued a "DON'T BUY" and cast a pall on the GS stock price which in turn affected the whole market. Last July 13th Whitney issued a BUY at a reasonably secure level. This was after a correction had been completed and a Up Leg was started that had a potential target, if C=A, of $213. While she made a late entrance [ GS had already gained $78 ] it appears, if I am right, that she has made an early departure [ red arrows on chart]. Nothing wrong with that as it observes the Prime : " Conserve your Capital".
For tomorrow perhaps the "correction" will be finished and the Index will get on with completing this Up leg. The First Resistance level will be 1076.76 and then 1080.32 . To the downside watch 1068.17 and 1063.14 . A lower TRL sits at approximately 1045 which would fit with a support level at 1045.96. All the remaining values are given below.
RESISTANCE
- WR4- 1193.08
- WR3- 1147.49
- WR2- 1101.90
- DR4- 1097.50
- MR1- 1094.1
- DR3- 1088.91
- WR1- 1086.69
- DR2- 1080.32
- DR1- 1076.76
SUPPORT
- DS1- 1068.17
- DS2- 1063.14
- DS3- 1054.55
- DS4- 1045.96
- WS1- 1041.10
- WS2- 1010.72
- MS1- 1005.95
- WS3- 965.13
- WS4- 919.54
DEFINITIONS
- DR-WR-MR
- Daily Resistance- Weekly Resistance- Monthly Resistance Levels
- DS-WS-MS
- Daily Support- Weekly Support- Monthly Support Levels
