Make Your Trading Plan Around This Support Zone
Playing The
Zones
A few days back we highlighted
a key fib zone from 1145 to 1150. The market failed to clear our zone and rolled
over. As of Tuesday’s close, SPX is down over 30 points from that 1150 high. So
now what?
We are approaching a fib
support zone from 1100-1115. If we close below this support zone, you’ll find an
Air Pocket that will most likely drop us like a bad habit down to the 1070-1075
area where our next fib support zone runs as well as the 200 day sma.
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So, for now, I’d expect us to
put in a short term swing low within this zone. As I look at lower time frames
(30 minute charts) I see that we’re in the process of wrapping up a 5 wave
series down. This likely translates to a corrective move to the upside (as small
is may be). Make your trading plan around this support zone from 1100-1115.
Have a great day!
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Derrik