Saturday, October 5, 2013

the yearly R Pivots stop the rally AGAIN!

Last April when the S&P 500 tested the yearly R2 pivot at 1600, it got a 60 point pullback. Last Thursdays low at 1670 was 60 points below the yearly R3 pivot. Coincidence? NO! market makers, banks, Quants and Algos ALL use pivot points. I have been warning investors & traders all summer to watch 1730 for MAJOR resistance. Remember, the high of the year in 2012 was also at the yearly R3 pivot. Below is the 2012 chart.