S&P 500 Market Weekly Report: August 2012

S&P Monthly and Weekly cycles

As noted in the previous Weekly reports, around 1420-24 there is a ton of resistance.

That resistance has slightly been altered with the shift in the September highs upwards..

However, there is still the potential for the S&P to rotate down towards the Weekly lows & also 1387...

Trend guide is simply the Weekly 50% level @ 1407...

whilst critical support remains around 1387/92

anything below that and September will be following a monthly break and extend pattern downward into October (MAJOR SUPPORT 1303.50)

S&P Monthly and Weekly cycles.

The S&P 500 is hitting a ton of resistance around these upper levels @ 1420-1424.

Not only is it the monthly highs in August, but it's also the 2012 Yearly highs, which have acted as resistance twice this year already.

There are two patterns at play based on these levels continuing to act as resistance

#1) follows an orderly pattern and rotates downward into September.

#2) tightening of the Weekly cycles, could lead to a large break & extend pattern back down towards the 3rd Quarterly 50% level...

Therefore the trend remains stable above the Weekly 50% level @ 1403...

below that same level, and look for daily closes below the Weekly lows @ 1388.75, and hopefully sellers hit the S&P Hard

Note:- I could be wrong and the Weekly 50% level supports the S&P and sends it higher in September.

S&P Monthly and Weekly cycles..

August highs is the target for this month, which is seen as random resistance.

However, there's the expectation that the S&P will make slightly higher highs in September.

S&P monthly and Weekly cycles

As noted in last week's report, random resistance was around 1401, and as we can see the market stalled around that level.

Next Week:- 1349 will determine whether the trend continues higher:- August highs...

or rotates back towards the Weekly 50% level

S&P Monthly and Weekly cycles

S&P has continued upwards, but only after it moved down into the Weekly and monthly 50% levels @ 1349

Trend bias is up towards the August highs.

However, my view is that around 1401 will form a random resistance zone

S&P 500 Market Weekly Report