The S&P formed a positive outside day confirming a strong closing well above the top of the previous sessions. The monthly closing was instead mixed just below the previous month’s one while remaining interior its range. The US market is still holding a large gap up1227 – 1203 that we expect to be test shortly closing part of it if not even all.
The indicators of the daily chart are now well positive and also those of the monthly one are above the line. The indicators of the s/t chart are of course also positive but showing well overbought conditions and potential negative reversals suggesting a limited upside potential. Nevertheless we could first see an extension toward the 200 days line that we find at 1255,02 where we expect strong resistance. This extension is an opportunity to increase the short position already established yesterday at 1232,50. We sell a 1252 overshooting!!
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FUTURE TREND RESEARCH