The Art of prediction even the near future is very difficult. Trader, however, must take risks. According to my calculations, on Monday, Sept. 24 the American futures contracts should continue the side way trend with some inclination of going down. In the short term there could be a correction to the nearest support at 1430-40 (S&P500 e- mini futures contracts) ,or if there will be a full blow correction, prices could go down to the strong level of support that is 1400. In the long and medium term I expect strong uptrend with new highs. Also in Poland – at least until the elections in the U.S. – FW20 should go up and break up through the strong resistance around 2,450 points and then get to 2550-2600 levels. In the near future stocks in Poland may also follow some downside trend of the American exchanges if it occurs.
Strategy for Monday: in some part of the session the futures in America will be going downwards. However, the closing prices not necessarily will be in the negative territory.
The first option – in the morning the S&P500 futures are trending upwards – wait for a highest possible level of WF20 and then shorten the market.
The second option – the S&P500 futures are going down a bit, wait for the deepening of the decline and look for the signs of recovery than take a long position.
The first option is more probable.
Probability of my forecast only 65%