I Spy
Let’s review the weekly
and daily chart of the S&P 500 SPDRs. There are a number of key observations
to make on each time frame based on our Fibonacci price and time analysis. First
let’s tackle the weekly chart:
A) Check out the time symmetry
of the most recent rally from low to high with the previous rally that ended
August 24. Both rallies were 4 weeks. That’s time symmetry.
B) SPY Stopped at the top of our first Fibonacci price resistance zone just
below 94.00. If SPY reverses to the upside there is a very good chance to see
this ETF rally up to the 96.50 range because there are no Fibonacci levels to
act as resistance so we have a little air pocket that could pull price right
up to the next resistance zone.
C) Based on this weekly chart from the low to high of the rally the first support
level comes in between 85.00 and 87.000 These levels are between the .382 and
.50 retracement of the most recent rally.
Now, let’s take a peak at
the daily chart:
A) We have one Fibonacci
price support level @ 88.29. If SPY falls below this level, there is a very
high likelihood we drop down to fill the gap around 85.00.
B) Coincidentally (or not) we also have a support zone around the gap with a
focus around 83.18-85.34.
C) Based on our time cycle analysis, the earliest this pullback could consider
reversing back to the upside would be the 14th (+/-1 day)
So, my game plan? I’m voting
on a fill of the gap into the focus daily support zone. Ideally that happens
around the 14th. If so, I’ll be drilling down to lower time frames to look for
a reversal pattern against this daily Fibonacci support zone to consider long
trades…long trades because the immediate trend on the daily chart IS up.
Good night!