Support failed at the 61.8% Fibonacci price retracement level and the price has fallen to the next retracement level at 78.6%6 in price or .145 cents.
The SP has also moved into the next Time ratio range of 100% of the previous leg. Due date 26/09 is a Saturday so (+ (or) - a day) Friday and Monday could be a key days.
A couple of things of interest.
1) The SP has penetrated the lower Bollinger band for the second time in this retracement. The first being at or near the 61.8% price and time level and the second breach at the 78.6 price level.
2) Although the price didnt rise at the 61.8 or 78.6 time ratio you can see the price had plateaued within the time range before it fell again to the current levels in both price and time. Adding a little more credence to the time ratio theory, as the price rose slightly after the due date for the 78.6 TR before falling to the next level.
3) This one concerns me a little - the SP has crossed below the short term 9, 21 & 50 WMA's and all 3 are now descending (Bearish at least in the short term)
4) If support fails and the low of the 08/07 is taken out this would confirm the onset of a new downtrend (IMO)
5) Fridays close was a Dragon Fly doji where the SP opened, fell and then closed at the same price as the open (A possible bottom indicator in this case) but will not be confirmed unless we have a couple of up days.
6) Monday & Tuesday next week will be important in both time and price as any further failure will indeed be Bearish.
7) A move North to .165 - .17 level will breach the descending trend line and mark the beginnings of the next minor wave.
8) If the trend is still bullish then we will see a move back to the moving averages very soon.
In all Next week is well worth watching. The ball could bounce either way,
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SDL Price at posting:
15.5¢ Sentiment: Hold Disclosure: Held
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