Thursday, April 29, 2010

$SPX Resistance And Retracements

OK, will the market act like Jimmy Johnson in the 48 car on the last lap at Daytona and just blow thru everything like it always does, or will some form of fair and real market action take place? I don't know, call Vegas and bet on the Fed is what I would do. If you have not noticed I am feeling a little over cynical this am. Sorry bout that. These people really piss me off. The whole friggin global financial system is on the brink of disaster and they are treating the impending stick save as the second coming of Gordy Howe. Screw that. They have many more and even harder shots to stop coming. Recovery? Recovery? LOL, what are they comparing all these great numbers to? The FRIGGIN TROUGH. Enjoy the euphoria people. Coming down from the high and having to face reality really sucks. The financial giants have just begun intervention (like that is gonna do any good). Again, I apologize for my temper this am, I am positive that most of you feel the same way.LOL, just found this one from Zero Hedge. Apparently even Rosie is getting on the train with Shanky -Zero Hedge Endorses David Rosenberg's Demand To "Ban The Bailout"

Here is an $SPX 30m chart with the 61.8% fib at 1205. the resistance lines are: Green -support off the February lows, Upper Black - is top line resistance from mid March, Red -  is support line from early March, Blue Dashed is the upper bull market corrective's top trend line going back to January of '09 (that is the big one), Lower Black (near red) is the most recent support line that was busted. 

So there you have it. A nice concise snap shot of everything that is in play. That is a boat load of resistance. All moves above the blue dashed bull corrective's top line have been brief and I believe that line will act as a cap. I honestly (like a moron) do not believe any moves above this line will be sustained. Here is a larger view of the above chart. GL!