Thursday, April 18, 2013

ShadowTrader Looking Ahead

SPY bounced off the 50 day moving average (red line) and the 161.8% level of the Fibonacci extension level drawn from the highs and lows of the dates specified on the chart above.
In the short term, the 100.0% level of the study (156.27) is now essentially the resistance level SPY must overcome to reverse the downtrend. If this fails to occur, the top of the prior channel at 153.64 will be tested. This line is now more vulnerable after two prior tests (blue arrows). The bottom of the prior gap at 152.92 then becomes the next line of support.