Today I am using Advanced Get (eSignal) to get a watchout for the next one or two weeks. Ok, what we see?

SP500 Elliot Wave Analysis 16. May 2009

On the 8th of May we had a high (930) and this high was the end of the Elliot Wave 3. A strong “Make or Break” line (the big blue barrier)  showed me long before this point was reached that it could be important to watch this price level. But where the price will go now? Some forecasts for the end of Wave 4:

First Support Level: 865-875
Second Support Level: 830-845
Third Support Level: 805-815

I personaly think that the price will reach only the first support level, because the uptrend is still OK. Watch the trend lines, there is no critical  break out. And if the price stays inside the lines the SP 500 is still bullish.

SP 500 Webotron Stocks Chart 05.16.2009

And what says the Webotron Stocks chart.

• The automatic trend detection shows us a trendless phase (no red or blue area) and the 2 last candles are small and have small bodies. Two indications of perplexity. Currently nobody knows the direction.
• A trendline is holding the price and a support line (870) is waiting to catch the price if it will lose control.
• And the best of all, the SP 500 is oversold (blue points).

My forecasting: Next resistance at 930 and the next target will be 975-985. BTW this level could also be the end of wave 5 and the beginning of a downtrend.

The next week (or the week after next) I am hopeful to go LONG. (probability: >85% )

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