March 11, 2015
- SPY Daily shows price nearing an up trend line.
- Price is also near Golden ratio and 100 Day SMA. So a pause or a bounce from these levels can be expected because of oversold conditions.
- Having said that when price re-enters a range after a false breakout the reverse move is usually swift and big so a bigger correction cannot be ruled out as well. We discussed the daily range in the Weekend update of SPY
- SPY WEEKEND UPDATE
- Weekly chart shows a falling support line or channel which may give a reversal.
- Daily chart is also shown with recent lows as support levels.
- If the daily and weekly channel does not hold then the Month Golden ratio will also be violated. This can take gold below 1100 levels.
- Gold bulls must protect the Channel support line shown in first chart to avoid bigger falls.
- ES 4 Hour chart shows price at 50% Fib level
- Last chart shows price testing a crucial support resistance zone. If this level is gone on closing basis more falls are likely. Bulls need to stay above this zone to avoid bigger falls.
- 2nd chart is shown with 200 SMA. All major falls recently has tested 200 SMA. Price likely to test 200 SMA This time too.