tuesday, page-107

Support levels for the S&P500 now would be:

1058.11 - 1/4 retracement of the move up since 2 September. Holding this level keeps the very fast trend up since 2 September in a strong position.

1047.08 - 3/8th retracement keeps the trend up since 2 September intact but not so strong.

1046.46 - 38.2% retracement (same as previous).

If these levels get breached then a deeper pullback is probably on the cards imo, unless the breach is only marginal and lasts no more than a couple of hours imo.

If there is a deeper pullback occuring now then the previous highs are also support (1039.5 and 1018) but 1027.44 is of more importance imo as that is the 1/4 level of the rally since 8 July and the level that has held on the previous 2 larger retracements since 8 July rally.

If Wednesday is not the high in place, and we have just begun a more sustained retracement and are then going out to November for a high as Robbbb suggests, that is a huge amount of time for a rally to complete but I guess it has come after a record setting decline so okay....

This rally in the US hasn't exhausted yet and being as large as it is, that is how it "should" (not "must") finish, from what I understand.

It is also interesting to note that:

- getting very close to the 1/4 extension of the rally over the same time period is what turned the XAO down last week (was within a point of hitting on the XAO and just within 2 points last night), and

- a 1/4 extension of a prior rally is what ended the '38 rally (overshot by 0.38 of a point).

I don't want to guess what will happen tonight. It could reverse up or be down large or consolidate.

Just watching.