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.

Tuesday, December 7, 2010

SPY Fibs

Interesting results today using Fibonacci to project price  targets on the SPY

Starting with the Dec.01 momentum gap up (using the 11/30 Close to the Dec. 1st Open) price reached a 200% extension (outside retracement) on today's Open.

Today's Open coincided to around a 150% extension of the previous day's range, while price was supported throughout most of the day at the 50% retracement measured off of the PDC and today's Open

Meanwhile, on a broader perspective, price was rejected from trading above it's 61.8% Fib. retracement today

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