S&P 500 Week of Nov 22nd to 26th Outlook
Recap of last week
The red and yellow zone from last weekly outlook pretty much captured the complete range of ES, not bad. The additional resistance area at 1180 is the previous month close. The intention to push the index lower from 1180, however, failed as the gap up to previous month high has trapped enough shorts in lower timeframes to scramble for the exit.
Next week outlook
First likely upside target is the green zone where the last unfilled gap is.
If yellow zone fail to hold as support price level, there will be nothing strong enough to hold up the market until after the red zone is tagged.
It is important to notice that not just the S&P is reacting to its monthly structural prices, the currencies are doing the same thing too. That means, as we are counting down to year 2011, something big is forming. It is not necessary a reversal of the current up run is coming (although it is more likely). It can also be a melt up given the right conditions happening in the coming few weeks.