SPX Rectangle

George posted a couple of chart’s recently showing the market’s sideways trading range. And I think a rectangle pattern is the correct interpretation of the trading over the last three weeks. Here is an hourly SPX chart (click to enlarge):

SPX Rectangle - 11-29-09

The blue box gives the height of the rectangle. A breakout or breakdown should move the same number of points. So, the green line shows the bullish resolution up in the 1140 area, and the red line shows the bearish resolution down around 1057.

The purple box shows the November 9th gap. In the event of a move down, that gap would likely provide support, even if only temporary.

Since the futures have already probed down to 1067, I’m expecting a bearish resolution. Further support for that expectation is that the IWM is now well below its November 9th gap.

Bulls can pin their hopes upon the fact that the QQQQ bounced off the top of its November 9th gap on Friday morning.

8 Responses to “SPX Rectangle”

  1. Stringm says:

    Do futures open 5 eastern? Thought they might be interesting this evening. Lot of folks think it will be business as usual this week, dollar down, market up. I am not so sure about that. Lot of rumblings about defending currencies. Maybe the global coordination is getting a few that distrust we are all in this together.

    String

  2. K says:

    sooo nice “U.A.E. Removes Sunday London Times From Newsstands”

    http://online.wsj.com/article/SB125949749179768285.html?mod=article-outset-box

    nothing to see here folks :P

  3. K says:

    euro back to 1.50 so whats goin on.

  4. admin says:

    String,

    The futures open in Chicago at 5pm, which is 6pm EST, of course.

    Matt

  5. Stringm says:

    Matt

    Looks like they opened up, and dollar down, business as usual.

    String

  6. Yerk says:

    Posted a certain level quite often … like here
    http://www.trivisonno.com/wednesdays-trading-8509#comment-43038

    These are almost always good for a IT top.

    If you’re interested what might happen when this level is broken
    you should be watching 10770 and 11245.

    Current target 5081.

  7. K says:

    ES 1096 resitance in hourly..

    now for pivots.
    Resistances at 1157 1134 1113
    Pivot at 1090
    Supports 1069 1046 1025