The weekly chart for S & P 500 shows the Fibo Fans from the top of 1576 and bottom of 666. The current move from the bottom of 1264 has had a run of more than 200 points on the index. A quick look on the rise shows that S & P 500 has never had a correction of more than 2 weeks in a row. This move is well defined by the channel shown on the chart. The Fibo extension show a 100 % target at 1556 which is 20 points short of 1576 high. On the chart we see that we have had a correction of 2 weeks. For the next week the channel shows a support of 1430 which needs to be watched carefully and is very critical for this trend. The top end of the channel is at 1464 and above which we will have a breakout on the upside. The 78.6% level on the Fibo extension is at 1440 level as seen on charts and incidentally this is the weekly close for the index. So as long as the level of 1430 is maintained on the index there is always a possibility of reaching the 100% target of 1556 on the S & P 500. Below 1430 the level to be watched is 1388 which if breached will create doubts for the trend. So till S & P 500 is in this rising channel use the channel bottom as entry point and high for the channel as target with suitable stop loss. The monthly pivot for S & P 500 is at 1444 and the resistance are 1482 and 1521 and the supports are at 1406 and 1369.
Happy Trading !!!
