Wednesday, August 6, 2008
S&P 500 Analysis on 6th Aug
S&P 500 Futures Hourly Chart suggested a Breakout yesterday which I mentioned in my post if it remains above 1262-65. Now, I must tell you the bigger picture - looking at Daily Chart, the picture is not that pretty. The reason is I see an ascending triangle forming and S&P 500 Futures are continually getting resistance at 55 period EMA (see the right most red circle).
Rising wedge, channel and triangles are mostly continuation patterns and so, as you can make out of the other two red circles I have drawn, this ascending triangle can also prove to be just a continuation of previous down move. I would keep a close watch on the support line of this triangle, once it breaks, then lower lows can be seen.
Let us watch what happens this week...