Midcap 400

  • June 25, 2002
  • Derrick Hobbs

The Midcap
400 SPDRS
(
MDY |
Quote |
Chart |
News |
PowerRating) is facing a key price support zone from 85.24-87.70. This
Fibonacci price support zone includes 8 price levels, and one of those levels
is the 50% retracement of the Sept. 21 low to April 17 high. I also have
four different time cycles pointing to a potential low around today.

So, unlike
some of the major indices, this one has simply made a 50% retracement of a move
from 715 to 1016, and is now facing key price and time support in what should
still be viewed as an uptrend. Now, this picture quickly changes if we violate
the support zones listed on the chart below. At that point, I would vote for
a test of the September 21 low if these price support zones are broken through.

Derrik

 

 

 

 

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