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Joined: 28 Dec 2005 Posts: 11982
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Posted: Sun Nov 04, 2007 6:28 am Post subject: SPX Potential Trading Range |
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The six-month daily chart shows SPX continued to hold the bullish inverse head & shoulders low at 1,480, while the 2000 peak at roughly 1,550 was resistance last week. The MACD (below price chart) created a bearish kiss, although 1,480 may continue to hold. However, if that level fails, then 1,425 (weekly lower Bollinger Band; not shown) is next major support.
It seems, the Fed achieved a "soft-landing" in 2006-07, given U.S. real GDP growth was reported last week at 3.9% for Q3, which followed real GDP growth of 3.8% in Q2. If real GDP can expand at roughly 3% over subsequent quarters, SPX may rise to 1,650 within a few months. A higher or lower GDP growth rate may be somewhat suboptimal.
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