SPX to 1033 / 1049 (Bull Flag)

This analysis is presented on Saturday eve, well before the ES futures start trading on Sunday eve. We all know that the futures action on Sunday can totally change everything.

The weekly trend is up, the daily trend is up, the hourly trend is up/consolodating, so for now I believe the following bullish scenario will play out. Charts to support the scenario are below.

Bullish scenario: There is a bullish flag formation in the hourly charts. If the bullish pattern holds, then it projects to 1033 and then 1048 if 1020 holds and then even 1060/73. Interestingly, all timeframes (weekly, daily, hourly) suggests an SPX increase to 1033 or 1049. Could go higher to 1073 and beyond, but the 1033/49 seem logical at this point.

Here is the detailed information: Notice how these are all close to 1033 and 1049.
Weekly chart: fib exten for 667 to 935 is 1033 (38%) and 1073 (50%)
Daily chart: fib exten from 869 to 935 is 1003 (100%) and 1043 (160%)
Hourly chart: Bull Flag calculation pattern points to 1037 and 1049.

Of course, prices won't go up forever, we will get a reversal down, but for now looks like we are headed to higher levels first if the Bull Flag holds.

Bearish scenario: if the Bull Flag pattern breaks down: Retest 1013. If 1013 holds then up we go again. If 1013 breaks then 1006, 1000, 996, 992. If 992 breaks then we likely convert to a downtrend and the upmove is finished for now.








* ChristopherStockGuy is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. For details, see the post from SATURDAY, AUGUST 15, 2009 titled "Disclaimer".