1.- The market seems to have found a support level (in the short term). In the case of SP-500, this level is around 1,125 points (the same is also seen in the DJ-30 and the Nasdaq).
2.- The market is creating a congestion zone. As show in the chart below, over the last four days, there has been a common area in the range of negotiation. This is giving rise to a market consolidation. (always talking about the short term).
3.- This area of congestion should be solved by taking the path upwards. That is, looking for the next resistance level.
4.- As I mentioned in my post yesterday, this level could be in the order of 1,250 point in the case of SP-500. But it could also be at the level of SMA50 days, if two curves meet.
5.- In the first rank, should create opportunities for trade. Yesterday, already have seen a greater number of stocks with a better patterns.
6.- Once the market find the resistance level, the probabilities of return are very high. In this case, would begin a process of falling market of significant size. Please click on the chart to enlarge.
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