thursday take off, page-22

Salutations ppl,

It appears to me that there was a strong sell off on the SPX after it hit the upper fib / 5/8th range level on Tuesday and then last night it got through that level marginally and there was another sell off which was not near as strong.

It kind of crept down last night but me seeing that move as creeping might not be too reliable.

Last night was the second test of that 5/8th resistance level.

Looking at the range of the move up since last Tuesday's low (888.86 - 931.92 (last nights high)) would give a 1/4 retrace of 10.77 points or down to 921.16 to hold this move up in a strong possy. To stay in a strong possy we shouldn’t trade below that level more than marginally for an hour or so.

So if tonight's down more than a few points that will mean this recent move up is not strong. Further, the daily shows an outside day down this Tuesday. An outside day down at high levels suggests immanent weakness (see 10/6/09 and what happened after that). The caveat there is "Are we at high levels?". Probably.

There would also "probably" be another test of the 5/8th level now before we go through it if we're still going up from here.

Still looking very sideways to me.

Chris