S&P500 Short-Term Update

S&P 500: 1343.78

Short-Term Trend: sideways

Outlook: Everything goes as expected here as the market is believed to be in wave D of a Contracting Triangle from the Feb 2011 top. The only thing that bothers me is the fact that Nasdaq 100 has already surpassed its May top (it was only intra-day, but still, such a move counts!). So, there is a chance that wave (X) has already ended at the June's low. We will have a confirmation of this bullish view if S&P500 overcomes the 1370 level.
Until the 1370 level is taken out however, we will continue to follow our Triangle analysis that suggests one final leg lower twd 1300/1290 before the next big rally starts here….

Strategy: Stand aside.

About the author: Alexander Nikolov

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