Current SPX Position: Long at 1683.47
Next Action: Stop-n-go-short at 1693.00 with stop at 4hr resistance
System Score: 5.5=Neutral=Trend Score + Turn Score=10-4.5
Proposed New Score: 56%=Neutral=Trend Score + Turn Score=48+8
The Score remains neutral but on the edge of turning bullish with any small drop or possibly just further consolidation. The stop-n-go-short level rose to 1693. For numerous reasons (pivots, Fib, price-volume, EW, bull market mid-point etc), SPX 1000-1200 makes a good initial target for the next bear market. I've never extensively tested my theory of reverse-Fib, but it's worked enough times to keep me interested and it's fun for a mathematical person to contemplate. The key pivots IMHO at SPX 1000-1200 are 1011, several minor ones at 1040ish, 1075 and 1220 (yes, that is slightly above the range). How far would SPX need to rise to make a common 50% or 62% Fib retracement match those pivots?
62% retracement of 667-->X=1011 --> 1568
62% retracement of 667-->X=1040 --> 1668
62% retracement of 667-->X=1075 --> 1735
50% retracement of 667-->X=1220 --> 1773
Since pivots are rarely retested exactly, SPX has already risen high enough to make a retest of 1040-1075 +/- ideal in Fib terms but further upside is also supported. Interestingly, the higher 1773 target is nearly identical to an OEW pivot and upper OEW target. Good fortune.
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