Monday, August 24, 2009

SP Trigger Points

The SP finally broke high above the resistence at 1015 Friday, roughly the .382 retrace for the whole move down. Now it needs to hold above that point and continue to make new highs for it to prove to be a classic breakout. In my view it's more likely a false break and slight "throw over" the wedge resistance line.
Please note that the 1015 point is now a 50% retrace of the last leg up from 996. A bull certainly would not want to see the SP get back below 1015 but especially 1000, the .76 retracement of that leg . It would confirm a failure of the break out and represent a serious reversal in momentum likely insuring a test of 975. For starters.



The C will =.618 of A at 1044. It MIGHT make it.
Pls note the RSI divergence.

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