Today, SPX index briefly traded though the 50% Fibonacci retracement level (1072) from July low to Aug high. It bounced right back from there, however, the bounce was pretty weak. If in the next couple of days, it can't gain back 1086, it will test 61% Fibonacci
retracement level around 1060. This is a very critical level currently I am watching. Not only because it is the retracement level, but also that it is the right shoulder of the inverse head-and-shoulder pattern. If 1060 can't hold, then SPX is in big trouble. Swift break down is in the card, storm coming.
2 comments:
one q, i dont know why the mkt kept at this level today, seems like someone is buying. i hope it's not the gov. there will be many reports coming out tmr, my only fear is the obama team lift the mkt hardheadedly. i don't understand TA, otherwise i will give you much credits on your work =p
One of the main tools in monetary policy is to control money supply, which is mainly achieved through rates. I don't think buying equity is in their policy mandate.
Today we have a bounce, but I think the bounce will be short-lived. Just watch 1060, if it close below it, the game begins.
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