The SP500 U’09 contract has started the week on the defensive and is searching for support.
How low can it go? Or more precisely how low can it go and not alter the underlying positive sentiment off the March’09 lows? - 862.50.
Expectations for this week are that as long as the MKT is below the 931 Inflection Pivot it is vulnerable to further corrective action target, 878, 870 and 862.50 on the extreme. If the current weakness is going to stabilize it is doubtful that the MKT will do much if any trading below 870 and will more likely bounce above 878. Any positive reaction out of the 878-862.50 are will have the 9312.25-929 as the week’s target resistance. REVERSAL strategies are recommended to capture any positive turn.
How low can it go? Or more precisely how low can it go and not alter the underlying positive sentiment off the March’09 lows? - 862.50.
Expectations for this week are that as long as the MKT is below the 931 Inflection Pivot it is vulnerable to further corrective action target, 878, 870 and 862.50 on the extreme. If the current weakness is going to stabilize it is doubtful that the MKT will do much if any trading below 870 and will more likely bounce above 878. Any positive reaction out of the 878-862.50 are will have the 9312.25-929 as the week’s target resistance. REVERSAL strategies are recommended to capture any positive turn.
Currently (1:15pm cst June 22, 2009) the Index will remain hard pressed below 902 targeting support. This Directional level will be a good gauge of momentum between the 931 and 970 inflection pivots.
A break under 962.50 is needed to confirm any sentiment shift off the MAR’09 lows. If so expectations are for volatility to pick up [use the 3457 level in the VIX as a sentiment guide and a violation of 4031 as the confirmation point that the fear factor is back] with 778.00 the initial target.
If the MKT stabilizes above 878-870 expectations for the week should be for a run at the 931-929 Inflection Pivot area with 902 acting as a sentiment gauge for any relief from today’s negative shift. This is a FADE opportunity as further sideways to lower action is the outlook. Only above 931 does the positive momentum engage targeting 963 initially. The likely environment will be stop and go however if the rally does extend it can climb up to 1017.
This Inflection Pivot forecast is for the week ending June 26,2009 and is supported by JS Services Daily Price Map overlay analysis.
For more information please contact me at info@jsservices.com. You can also visit http://www.jsservices.com/.
John Slazas
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