Thursday, May 27, 2010


So looks like the pre-holiday rally is underway and everyone is looking at the inverse head and shoulders on the hourly  S+P with neckline at around 1090.  This would give a target for the bounce in the S&P of 1150.
I like this 1150/1152 target a lot:
1.  It is a measured move so would be equal in distance to the bounce off the flash crash low
2.  Its the level where the S&P broke the daily trendline from the March 09 lows
3. It's the previous resistance from the January highs.

All in all if the S&P can break 1090 then 1150 is a very reasonable target and pretty nice reward.
This also means that the AUD and CAD long trades (and NZD too) should work very nicely.

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