Friday, November 23, 2012

Black Friday Musing : S&P Update




Last week I made mention to the significance of 1341. The daily chart shows that price retraced .618 of the previous swing. From 1341, the figure, I believe that the current advance isn't complete AND I'm watching several key levels of resistance for a turn. The confluence area of 1398.75- 1399.5 are significant as they also represent the level where the market found support ( look at the congestion area around August and Sept). What was support, is now resistance! 







Dropping to the 4 hr chart level, I find  a level of agreement between 1401.75- 1402.5. Combined the daily  levels, I would be surprised if the Fibonacci cluster didn't  put a lid on this rally. 

Today should be day of light trade and it will be interesting to see if somebody is going to push this market around.






Here is a possible wave count that I'm working. We currently have three waves up and done and a final impulsive rally is called for. If correct, price should push higher before meeting resistance near cited levels. Also, under this assumption, price has no business below 1387.25 at this point. Should price fall below the figure, the count is wrong. 


Let's see what happens. 




Best of Trading

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