Thursday, 1 November 2012

S&P 500's rejection of trend channel boosts the bearish case

Last night the S&P 500 tested and rejected the bottom line of the overhead short term consolidation channel illustrated below (and previously). The chart also illustrates the up trend channel from the bearish scenario from my weekend post. This scenario is strongly bearish for the S&P 500. Charts include all sessions trade.

The bullish scenario from my weekend post is illustrated below, and is hanging on by the skin of its teeth. Only a rally up through the bottom line of the overhead channel, ie. above last night's high, would boost the bullish case.

ASX 200 testing key weekly chart support after hours

Weekly chart shown below, includes after hours trade.

Daily chart shows the market is still trending upwards, and above short term support.