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.

Saturday, February 6, 2010

Measured Moves Down

Here's a look at the indexes (in ETF form) over the past 14-days on a 60-minute time frame. All displaying great examples of Fibonacci Retracement levels and Extensions.
The SPY, a very nice example of a corrective A-B-C wave pattern (though A-B-C on the chart weren't meant as Elliot Wave labels). Direct overhead resistance with the 38.2% retracement (measured off of the 2/3 swing high to 2/5 swing low) which is also the previous support from 1/29 (Support-turned-Resistance?).Q's showing the 1-2-3 momentum push. Very upward to sideways-sloping consolidation cycles, compared to the others, I wonder what that says about the participants trading it? (btw, the labels 1-2-3-4-5 are not meant to be Elliot Wave counts). Confluence of Resistance at the $43.30 area where 61.8% and -27.2% meet up.DIA, yet to really "bounce"!? First move would bring it at least to a 38.2% retracement measured off of the 2/3 swing high to 2/5 swing low.and IWM, looks like just a dumping of shares (ditto DIA) these past 3 days. Watching to see how well it handles overhead resistance at 38.2%, and previous support (turned resistance?) at the 50% retracement

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