There is synergy in all the indexes. As shown in the following charts, there seems to be agreement between the 50% retracement line and areas of support. We guess that is where we are headed. A month ago we saw problems but we were way too early to go short. The indexes broke the ascending trendlines two days ago. We will be looking to go short with any bounce. These retracements give the stock market room to breathe. Do not sweat it. Key levels of support are 2400 for SP-500, 10,750 for the Dow Jones Index, and 1140 for the NASDAQ. Watch them like a hawk.
Nasdaq Stock Market Chart for 11-16-2010
Dow Jones 30 Stock Market Chart for 11-16-2010
SP500 Stock Market Chart for 11-16-2010
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I am a dad, professional engineer, MBA student, and a financial fanatic. I can help you make money in the stock market. I use Fibonacci techniques for retracements and targets, technical analysis, some little fundamental analysis, and automated systems trading. I also trade options. In addition, I use CANSLIM to get neat growth stock ideas. No fluff and no BS.
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Twitter: fxts1
This retracement may be not retracement at all. This can turn into another long downward trend.
It seems like it. I am not going to argue the contrary. However, I rather leave the markets do what they are going to do and adjust my trading as necessary.
The market was just too strong to make it down to even fib 38.2. You might already have noticed, but today on a weekly chart SPY breaking out of a beautiful giant cup and handle today. Haven’t looked at the volume yet, but looks good so far.
If you’re into fibonacci analysis you might want to check out a page I wrote about it here ==> “fibonacci retracement trading strategy.
Thanks for stopping by. I concur with you. I saw that the market refused to break. However, there is a lot of divergence out there. My opinion is that it is December and managers would want to prop up the market to look good. Maybe some window dressing. I am carefully long at this time but not optimistic.