SPX 500 - Retracement at Hand

In the last session the Index Price broke below the Lower Trend Line of the Rising Channel . The Price continued down to test the level 1292.66 . This level was the level termination point of the first leg ( EW 1 ) up from1074.77. The level is supported by several Fibonacci levels between 1292.46 and 1292.18 . This "zone" [ 1292.66 - 1292.18 ] was positively tested by the eventual drop to 1291.98 and the subsequent reversal back to 1295.12. The Close Price also happens to be the Fibonacci level D1L2AF500.

The 15 Minute Chart shows that both the Birds [ http:// theidiotandthemoon.com ] CCI 6 and CCI 20 have
broken above -100 indicating that some degree of a rise in Price is underway. The 60 Minute Chart shows that the Birds are forming higher Lows while the Index Price has been forming lower Highs . The Canary [ CCI 6 ] is 8 points shy of the -100 level and is rising towards that level. The daily Chart shows that only the Canary [ CCI 6 ] , while still below -100 has been rising while the Price was falling . This is an indication that a reversal may be at hand . The other Birds [ CCI 20 and CCI 50 ] are indicating that that the rise will probably be short lived .

So far the Index Price has risen from 1291.98 to 1295.12 . I am assuming that the rise will continue and, in my estimation, once 1297 is cleared the target will 1310 +/-. If it is a normal retracement of the correction [ 1415.32 - 1291.98 ] then the levels 1321 and even 1339 could be tested . Just remember that this rise will be short lived . like Icarus flying towards the Sun.

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