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CURRENT MARKET TREND: Up 5/27/16 @ 2090
Stop-loss 2026






Friday, May 9, 2014

SP-500 Weekly


Picking tops isn't much fun. Even when you find a zone likely to cause a reversal, the market will stay in that zone for a few weeks to a few months just to mess with you. I have been out of long positions, except for a few scalps here and there, since March. At that point I put the giant, red down arrow on the website. Since then we've just chopped around.

On the weekly chart above, you can see the SP-500 has been respecting the 50% fib fan since 2012. Every time it has touched this line a pullback has occurred. We are also within the range of 3 fib extension confluences from 1892-1954. I expect that at some point within this area the market will finally give up and drop to at least the 61.8% fib fan. If this line provides support we should look for highs up in the 2200-2400 range to come. If it fails to support the drop, I will conclude that the long term trend has changed to down and remain short.

Pointers: I am taking no long positions on the SP-500, at all.

5 comments:

  1. Excellent use of the fib fan. It's an great tool that isn't used often. It works good on triangle formations also. . . .Herm

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  2. Hey Herm. Are you saying the bcde legs of triangles bounce off fan lines? I'm interested in seeing this if you have an example. Thank you.

    Jim

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    Replies
    1. Check .... http://up-ur-assets.blogspot.com/2014/05/eurjpy-triangle-formation.html

      It worked quite well there

      Herm

      Delete
  3. Hi James,
    Are you still with the idea of 1954 being the top of SPX?

    Thx

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  4. James,
    Here comes 1955 . Are We in reversal zone?.

    ReplyDelete