Friday, 15 August 2014

S&P 500 futures rally to test resistance at key down trend line drawn from July peak

Daily chart shows the S&P 500 testing resistance at the key trend line drawn from the July peak.

Zooming in to the hourly chart suggests that the rally is slowing, falling below trend line support. Also, the rally is in a clear 3 waves, so corrective in nature. It would need to morph in to an impulsive 5 waves to favour a retest of the July peak.