Regardless of the earnings announcements last week, we continue to push higher. The weekly candle ranges are becoming smaller as bears are stepping in to hold prices at these levels. We touched the 875 level on the S&P which was our target in last week’s forecast. We should see resistance at these levels so a pullback in the form of a gap down Monday would be expected.
The S&P has held a close relation with the 10-Day Moving Average and can be used as an initial target for any pullback that may occur. Notice how we tracked along the lower side of the 10-Day Moving Average on the move lower and once we closed above it, began tracking on the upper side.
With the big names like Google, Citigroup, Intel and Goldman Sachs reporting earnings last week, we can assume those prices are factored into the market already leaving the market in need of some other catalyst to drive prices higher.
The S&P has held a close relation with the 10-Day Moving Average and can be used as an initial target for any pullback that may occur. Notice how we tracked along the lower side of the 10-Day Moving Average on the move lower and once we closed above it, began tracking on the upper side.With the big names like Google, Citigroup, Intel and Goldman Sachs reporting earnings last week, we can assume those prices are factored into the market already leaving the market in need of some other catalyst to drive prices higher.
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