Here’s A Likely S+P Scenario
A
likely scenario for the S&P would find that we correct around 50 to
55 points from the January 3 high of 1217.90. That would find price trading down
around the 1145-1160 area, where I have a confluence of Fibonacci price
retracement and extension levels. I also have 2 symmetry levels in this zone
that identify where previous declines ended (48 points and 52 points) since
September. This zone is also where the bottom of an uptrending regression
channel sits. We are still in an uptrend and the only way I start to change that
thinking is if we close below 1140. In that scenario I start to set up the short
side on any rallies into resistance. For now look for the fall to continue for
another 20 to 30 points, then consider looking for long opportunities as long as
we hold support.
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Derrik