Last time I wrote about what could possibly go wrong with S&P500 index spotting a fundamentally overvalued reason and Price action on quarterly charts. This time it is more of a simple technical reason which explains why the 10% correction is due in S&P 500.
Technical resistance in ES-Mini S&P Futures built around all time high . Price is currently whipsawing around the psychological reference around 2400 multiple times on Wednesday trading session. On the hourly timeframe trend exhaustion is witnessed and whipsaw on Wednesday is very frequent around prev day RTH session high. Overall short term rally from the recent swing low of 2344 looks tired and possibly it can test the reference back.
Currently Both the US Indices S&P500 and Dow Jones are in positional sell mode for a long time since 2nd Jan 2014. Currently the resistance zone coming around 1855 and 16543 respectively. Position will be reversed to positional buy mode if the resistance zone breaks on the hourly charts.
The National Stock Exchange (NSE) would be launching derivatives based on S&P and Dow Jones indices from 29 Aug, 2011.The National Stock Exchange (NSE) would be offering derivatives based on the S&P 500 and Dow Jones Industrial Average (DJIA) equity indices. These would be launched on Monday, 29 Aug, 2011. Derivative contracts based on global indices are being launched in India for the first time.