daily time frame price action is currently clearly supported by the 9 Day SMA
( Orange ). The recent parabolic price action was a clear reaction to the FOMC announcements relating to QE3 and a falling USD. Indicators like MACD
. and RSI
are all at extremely overbought levels. Any corrective price action or controlled pull-back would be seen as a good opportunity for Long set-ups by the majority of traders and investors. Current support on the downside is located at 1762.94 which is already mentioned (9 Day SMA
) followed by 1722.39 which is the previous significant low and also 20 Day SMA
. Alternatively the resistance on the upside is initially located at the 1792.70 level.