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\n\tThe SP<\/span> or E-mini is a futures contract on the US broad market S&P 500 index. Since the begin of October it has fallen approximately 100 points, and it is now sitting at 1354 — near the first key level of support the TechWizard<\/span> has identified (1350). Three more support levels are identified on the above chart, being 1320, 1300 and 1265.<\/p>\n \n\tThe price action is starting to accelerate to the downside and the Wiz notes a lot of indicators are getting way oversold. Yet they are staying oversold, which is very bearish.<\/p>\n \n\tThe 20 MA (20-day moving average) white line has crossed the 50 MA yellow line and now the 20 MA is touching the 100 MA black line, so this correction has a lot further to go.<\/p>\n \n\tThe Wiz believes that interim support will manifest between the 1350-1320 levels after which we should see a bounce, but then then a resumption of the down-trend to test 1265 by Jan 2013. \n\tThe TechWizard<\/span> is the pseudonym of Scott Morrison, whose experience in financial markets exceeds twenty years. Morrison operates his own website nowadays at www.techwizard.com.au. All views expressed are the TechWizard's<\/span>, not FNArena's<\/span> (see our disclaimer).<\/em><\/p>\n \n\tTechnical limitations<\/strong><\/em><\/p>\n \n\tIf you are reading this story through a third party distribution channel and you cannot see charts included<\/span>, we apologise<\/span><\/span>, but technical limitations are to blame.<\/strong><\/p>\n
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