One More Day for the Bulls ?
They say it was a volatile day on the NYSE but from my viewpoint it was just a normal correction session with lots of killing time.
The $SPX opened at 1109.22 down 0.08. They like to work in multiples of four. Then the Index worked its way down to 1102.19 where it tested the 0.382 retracement Fibonacci value of 1112.69. It was a positive test and then for most of the session a "game" called "Your Turn" was played. This involved the Fibonacci levels 1105.37 and 1107.85 taking turns to be tested. At the start of the last hour of the session the "game" was terminated and the Index RIP to an intraday high of 1110.52. The Close at 1110.32 was just 0.12 points above the Fibonacci sub level 1110.20 .
So the next session should be the last one of this "rally". The potential target levels are :
- 1116.52 - 1118.35 - 1121.44 - 1123.98 - 1136.06 - 1156 - 1162
The last three levels are possible if the MMrs decide to slaughter a few more "Bears". Lately the Index action has been too predictable so I believe the time has come for a big surprise. First for the "Bears" and then for the "Bulls" . Their turn will come when the price action of the Index takes on the flight characteristics of a large stone.
The calculated Resistance Levels for the next session are :
- DR1-1113.16 - DR2-1116.01 -DR3-1123.45 - DR4-1132.67
Notice the close relationship between the target levels and the Resistance levels.
The Support Levels which may come into play tomorrow are:
- DS1-1104.83 - DS2-1097.35 - DS3-1091.62 - DS4-1082.69
RESISTANCE
- WR4- 1189.57
- WR3- 1156.51
- MR2- 1133.91
- DR4- 1132.67
- DR3- 1124.34
- WR2- 1123.45
- DR2- 1116.01
- DR1- 1113.16
- WR1- 1108.46
- MR1- 1085.05
SUPPORT
- DS1- 1104.83
- DS2- 1099.35
- DS3- 1091.02
- DS4- 1082.69
- WS1- 1075.40
- WS2-1057.33
- WS3- 1024.27
- MS1- 1003.64
- WS4- 991.21
DEFINITIONS
- DR-WR-MR
- Daily Resistance- Weekly Resistance- Monthly Resistance Levels
- DS-WS-MS
- Daily Support- Weekly Support- Monthly Support Levels
