Tuesday, March 24, 2009
So much support
Ok, let's assume we're in 2.1 down here. What lies ahead to stop the fall or at least make for a bumpy ride down. There are speed bumps all over the place.
We took out the 10ma. One of may fav indicators for a trend change. Does not always work, but if you are trading under it you are headed down.
Then we have 803 support.
Then we have the BB 20ma.
Then we have the 50ma at 784 (which most want to see conquered).
Then we have the 38.2 fib retrace at 781.
Then the gap at 772.
Then the 50% retrace at 768.
Finally we have made it to the lower BB currently at 764.
If we blow thru the lower BB the 200ma is sitting at 757.
The support at 755.
The last line of defence is the 100ma at 746.
Note I have left out some key support lines.
Well, I would have to say the bears have their work cut out. Indicators and wave counts are in their favor as I see them. The target for now for the first corrective A is 764 - 770. The lower BB. 731 still stuck in my head as a number for 2.1 bottom, but that is a SWAG at this time.