Saturday, October 10, 2015

SP500(SPX): A bear flag is forming...

SP500 (SPX) is probably forming kind of a bear flag which probably will signal the continuation of the recent downtrend.Currently as we noted yesterday there is lots of resistance at 2020(Lots of overhead resistance for SPX today). A weak support line lies at around 1915 and then there is some significant support from the lower trendline of the bear flag.For the next couple of weeks we expect a move towards the lower line of the bear flag.However this line probably will hold at least temporarily and a bounce towards 1975 is very likely.