Counting from the lowest closing low on March 9 the cash S&P500 moved upward for five Fibonacci trading days before reversing intraday yesterday at a price confluence area. A previously identified Fibonacci cluster sat from 772-773 but we edged up to just over 774.
Added to the chart today are more “resistance” levels. In dark purple are two thick horizontal lines denoting the bottom of the market in 2002-2003 based on the notion that previous support might now be resistance. The three horizontal lines labeled 45, 90, and 120 are Gann targets from the recent low. Such targets become particularly interesting when they coincide with Fibonacci clusters. Price also touched the top of the regression channel line (blue downward sloping to the right lines) from the January 6 high.
So there were plenty of reasons to reverse yesterday. We should now see a bit more follow through to the downside and the 774.53 high become a PRP if not also a fractal.
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