Monday, January 20, 2014

A Quick Move To SPX 1900 Is Highly Likely This Week

Updated for buys on 1/18

There is an excellent chance that SPX breaks through its Primary Downtrend Line, resistance at 1850 level and rallies to tag the upper line of its current Active Price Channel (APC, thick orange) around 1900.

There is a small chance that SPX sells off early in the week.  A daily close below its 20 D-SMA would signal a possible test of lower line of APC and possibly 50 D-SMA around 1800.  My plan is to do my 3rd buy around 1806 should SPX sells off this week.

Disclaimer: The views expressed are provided for information purposes only and should not be construed in any way as investment advice or recommendation.  Furthermore, the opinions expressed may change without notice.