The setups I include on this blog are used in conjunction with the 3/10macd and the criteria I ascribe to it as a way to alert me to an existing condition of price. The key concept to take away from this blog is that I try to anticipate what will happen on the higher time frame by using a faster time frame to trigger the trade setup. I do not trade a "system" I use two indicators to clue me in to price conditions. Please read the Disclaimer located in the sidebar of this site. I can be contacted via email at
I am always open to questions, comments, or suggestions on how to improve this blog.

Thursday, December 10, 2009

Fib resistance/support

The 78.6% retracement strikes again!
The SPY met with resistance on the gap up this morning (as measured between the most recent swing high to low). Momentum registered higher on a lower price swing (Slingshot setup), but we didn't get much movement today.AIG sold off this morning from the $29.50 level. Funny thing is, it closed right on top of the 78.6% retracement level (as measured between the previous impulse swing move and the highs at the bounce). Also, price barely measured a negative momentum reading (bullish divergence). We could very well see a snap-back in price, or perhaps a buyable gap down if that's the case in the morning.

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