Thursday, May 7, 2009
890 Target For This Pull Back
The turn here should be real, but it will also be real short. Those pesky support lines on the indicators may have one bounce left in them, but maybe not. I just don't see how it can continue. 890 target by 5/13 then push back up to 938 to 962 for back test of rising wedge before larger move down to 836 - 800 range (then the very healthy run up to 1015 to 1021 my targets now). Right now I am looking for this first wave to end on 5/28 at the latest and could go as high as 962, but I like 936 on the week of 5/28.
The upper chart shows the 60m SPX with fibs and other goodies. Notice the support lines on the indicators. This is better seen on a longer chart (look at 'em on the /ES chart). The indicators are running out of room for significant price increases at this point IMO. The lower chart shows /ES minis from the bottom, the wedge, the top gray line is the larger channel off 1420 top, the 200dma and the resistance line at 943. Nice intersection in the blue shaded area, thus my target and time line for the top and turn of this wave.