12/12 Final Support Zone and SPX True Value

TA session is now confirmed.

Sunday 12/14 Morning 9:00am to 11:00am Pacific Time
Paltalk room: Stock4Profit Chat
No password
More like a Q&A session on 5 min and 15 min trading system, basic pattern, and free chat.

Future is having sell off after hour.

Here is what GS put up:

SPX eps for 2009 at $55. Put a 10-12 PE. That will be 55*10=550, 55*12=660
Now we are at 850 is still over valued over 30% on 2009 fair value!

Auto bailout failed plus all bad news came from all directions. Future sell off hard tonight, the low was 829. NOW future is off from low and trading at 842. I believe this is because mkt is in hoping Bush will use TARP money to save GM and Union will come back to table.

Honestly speaking GM BK was NOT priced in current SPX price. So if it is indeed fail, 741 was not the low for 2008. BUT I also will be surprised if they don't do something to give gm some money to survive till Obama comes in. So I think there will be something to work out.

From TA point of view, 840 area has volume support.

If SPX is able to hold 840 through out tomorrow, it is not a bad sign. But it is not a safe swing trade at all, Just for DT.

IF by anytime SPX lost 815 line. There is NO support all the way down to 741.

IF SPX losses 740, we will see 6's.

Charts below:

http://stockcharts.com/charts/candleglance.php?USO,$CPC,$CRX,$VIX,$RUT,$SPX,$INDU,$NDX,$BKX,$XJYB

Dynamic chart SPX Daily
Dynamic chart 15 min SPX
Dynamic 60 min SPY
Dynamic 60 min SPX