Well, this is interesting. SPX has hit the 127% fib extension on the weekly chart on a negative week. The low of the week was 666 which is the exact projected price from 1008 (last significant high, and the low of November 09 which was 739. The move picked up momentum after the break to the downside from the large triangle. The points picked are important. The triangle formed within that range just quoted, hence a break above and below these points are significant.
We also have another very interesting development. There is a cluster of fib 127% from the daily chart. The last significant high taken from above the 50 MA is 944 and again the low used in 739. We get a projection of 683. The daily bar on Friday (6 March 09) fell through 683 and manged to climb and close at 689. (see below)
On Monday get ready to place the trades. Place put credit spreads below 550, which is the below the 161% fib extension and also below the channel of the weekly chart.
1 comments:
looks far to clever for the layperson to understand!
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