Thursday, April 19, 2012

S&P close to breaking below 50day.


S&P e-minis holding its 50day moving average...for now. That has been todays support line and about half way between the range recently spoken about. If it closes below or moves aggressively below intraday then look for continuation to the lower end of the range in the near future - possibly tomorrow.

More on this area of support...it happens to be the 23% Fibonacci retracement line of the move from the December 19th lows to the April/March highs. So yes, it is significant. Below here the next level of support is the reaction low from early March which also is close to the 38.2% Fibonacci retracement line near 1330. That move, if it happens, should conclude wave C of the ABC correction. That part of history will be interesting to see how it unfolds in terms of velocity and duration.

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