Wednesday, December 30, 2009

SP Rally End?

Is the rally over? Sure looks like a correction.

The 50 % retrace of the entire move shows up as 1126 on this chart. Using 1576, 666 and 1130 as the points I get a 50.9% retrace.

click to enlarge
This trendline may be important but it's been taken out numerous times before, when drawn using Sep, Oct, or Nov lows. More important will be overlapping the 1087 low; note the consistent series of higher lows.


An early tell might be taking out the  .618 retrace here, esp if done with conviction. That trendline from the daily bar chart crosses somewhere around there. AND 1103 is the .236 retrace of the zig zag abc up from 1021made Nov.2.

No comments:

Post a Comment