Option Investor
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Buyers at Support, GE Rallies Late

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Just as the RUT.X was at a critical support level into the last hour of trade, so was the broader and slightly STRONGER S&P 500. GE dividend guidance into the final hour of trade helped boost some late session confidence, but the levels remain the same as noted earlier this morning in the Market Monitor.

S&P 500 Index (SPX.X) 60-minute intervals

[Image 1]

You won't see the pattern on a 30-minute interval chart, but traders should be alert that the POTENTIAL pattern exists. For pattern to trigger, NECKLINE needs to be broken to UPSIDE.

Again, several bottoms have been called in these markets the last several weeks. All have failed (at least two).

That can bring BEARISH complacency as "this one isn't any better."

Except of course, when there's a POTENTIAL bottoming pattern like the reverse head/should pattern.

First real level of STRENGTH for the SPX is to reclaim the MONTHLY Pivot of 882. FAILURE of the pattern is the critical level of 818.

Pattern OBJECTIVE if neckline (drawn at 900.00) would be 1,044.

DAILY Pivot Levels for tomorrow (based on today's REGULAR session high/low/close) are Ds2= 806.50, Ds1= 827.65, DPiv= 839.10, Dr1= 860.25, Dr2= 871.70. I don't see a real "key" intra-day level of overlap here. Last time the SPX traded a Dr2 was Monday, 11/24/08 at the 840 level.

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