Short-term Technical Analysis of S&P500

This one is real simple guys. We broke a month-long support area earlier this week that is now heavy resistance. This level is around 1140. We saw three solid rallies that got started off a bounce from these levels: The Aug 26th low was 1136, Sept 6th was 1140, and 1136 on Sept 12th. We saw 8.2%, 5.6%, and 7.3% moves to the upside respectively from those lows.

This time around, however, support broke. This area has acted as resistance temporarily, that upon a breakout, could create a wicked short squeeze. I say could, because until we see it break through, there's nothing to act on.

This is a chart of the S&P500 broken down into 10-minute time frames. I am watching the 1142 level, just to be sure, before making any commitments. If and when this breakout occurs, a nice risk/reward could set up.

Stay tuned...