Sunday, December 6, 2009

S&P tests 1120

This past week, the S&P 500 tested 1120....the 50% retracement fib(mid), from the all time high in October 2007, to the March lows this year. The market has made back 50% of it's losses. I have been saying for a few months now, that I was looking for 1120-1136, for the 2009 highs. The yearly R1 pivot is at 1136. This is a major resistance area. Looking at the chart above, we have been going sideways since the November Bradley date. New highs have been sold, not bought, like last spring and summer. This is the new trend. Look for more of the same this week, as we consolidate more. Trading range 1070-1128.