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Keene Little : 8/24/2008 10:06:09 PM

Monday's pivot table: Link

I had mentioned on Friday that those who were short the market should use SPX 1293 as their stop and with a high of 1293.09 it could certainly have triggered a stop if you used it as a hard stop. But I was watching the downtrend line from May 19th and that's exactly where SPX stopped. That and its broken uptrend line from July 15th. An immediate rally Monday morning would be bullish but as long as that resistance level holds then the bulls haven't taken over the ball yet. This is what we're looking at on the 60-min and daily charts:
60-min: Link
daily: Link

The 60-min chart shows the key levels are 1293 to the upside and 1275 to the downside. The daily chart shows the key level to the downside is the August 20th low near 1261 as that would obviously confirm the bounce since then as just another correction and some strong selling would start a much more serious decline into October.

But a push higher on Monday would create a bullish price pattern and would suggest we'll see SPX rally at least up to 1320, if not 1350-1375, into the first or second week of September (and then start down strongly into October). So let's see what Monday brings us and hopefully we'll get our answer soon.

OI Technical Staff : 8/24/2008 9:59:59 PM

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