Tuesday, 26 February 2013

ASX 200 rallies from trend line support

S&P 500 up trend lines suggest rally imminent

Many times recently I have posted an S&P 500 chart showing a bearish wedge, and this morning I posted a chart of the S&P turning lower from dual trend line resistance. The bearish scenario may play out, but it is worth looking at bullish scenarios for the S&P 500 given today's ASX 200's rally from trend line support, and Europe's failure so far tonight to break lows from earlier in the month.

The parallel trend lines on the daily chart suggest that a rally may be imminent, so long as the market stays above the lower line at 1475.

In support of the near term bullish view, the hourly chart is showing a textbook Elliott Wave A-B-C correction, with a completed throw-under / false break lower. Though it is not prudent to place too much store in intra-day formations in all sessions trade, best to wait to see what the US session throws at us.

Is Gold's decline complete?

Is Gold's decline complete? Its rally back in to the down trend channel drawn from the October high suggests it may be, with recent action being a throw-under / false break lower. A break upwards from the steep down trend channel would add confidence to the near term bullish view

S&P 500 turns lower from dual trend line resistance

The S&P 500 last night turned lower at dual trend line resistance. The bearish wedge is still in play, a live possibility, and could signal the end of the entire advance from the 2009 lows.