Thursday, May 20, 2010

Minis At Support (For Now?)

In the post this a.m. I mentioned the first retracement confluence. the 38% off the July low and the 23% off of the 667 low. Well, here it is. The red line is the support line running under the August thru February lows. That is the 1102 retest (combined with the 200ma on the SPX) that I discussed earlier. This is the best S/R line I can find at this time. You can draw one off of the October lows, but I have not been forced to at this time. 38% retrace off the 47.5 high (the backtest of the P2 support line (yellow) I called the other day) is 1109 and there is resistance in the 1105 area. That gray rectangle was the gap. Former gap resistance would be near 1107. (Just covering all the angles - of course none of this may matter in 10 minutes - either way - LOL). With the markets trading 50:1 to the downside, yet being held up by some form of trading fairy, who the hell knows. It should be at 950 by now IMO. GL!