August 17, 2013

S&P 500 Weekend update

 
  • S&P 500 Managed to close below 50 Day SMA. But the closing does not looks convincing and Bears need to do more to pull prices down further.
  • Price is at 38.2% Fib level which is at 1652. This level has to break for extending the down more.
  • Bears must take care as Daily stochastic is reaching oversold zone. Bearish Below 1652. Strength above 1664

2 comments:

  1. You are missing the SHORT FIB setup from the last swing highs to lows from a 15 min chart. I trade the SPX for a living (selling SHORT strangles, SPX) and you must follow fib rules to successfully determine if the shorts are broken. Simply calling out the 38.2% is not enough. Take the last swings and you will see that 1655 was the last -23.6% target, and price descended past that level and look for a -61.8% over-shoot support level. Also, as I said, draw up short fibs from the last swing high to low and let that 61.8% resistance/break level prove itself before you go long again. CYCLE is short until shorts break, and then longs must hold.

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  2. Thanks for your view.
    I have shown Fib levels for the swing high and low in daily chart.

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