Written By Basilio Chen

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Since October 6th, we had a reversal with a LONG bias.  Technically speaking, Longterm (LT) and ShortTerm (ST) are Long biased.  Prices (of S&P 500) following an upchannel as shown below.  Prices are now getting overbought in the 60 and 720 timeframes (97% overbought in 720).  Prices reached the significant target of 1940 (resistance).  There is still room for 1 or 2 more up moves in the next 24 hours.  Time to tighten trailing stops and some profit taking.

ES Oct 21 2014 Up

1940 (resistance and target) also coincides with the 200 MA of the 720 timeframe.

Following the next move, we would expect if there is a new long term trend developing, that it will begin to show it’s face soon.