FX Calendar

Tuesday, August 25, 2009

S&P 500 and the arcs





SPX daily chart with Fibonacci arcs looks beautiful! It is somewhat subjective as I have tried to curve-fit it :)


The action since March 09 has found resistance at 61.8% level and support at 50% arc. Eventually, the 38.2% arc supported the pullback. Now it is going towards the 78.6% arc.


But wait, is it a tombstone Doji today (actually yesterday since it is past midnight)?
It is. That too after an uptrend. You know what it means : sell the futures.

Plus: momentum is diverging.

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