Thursday, June 20, 2013

SPX Daily Chart Fibonacci Retracements

Big gap-down drop today and 41-point, -2.50% drubbing. The 50-day MA at 1618.25 is lost. Note the strong volume the second largest volume day of the year judging by the chart. There has been a lot of stocks thrown overboard the last couple of days on strong volume. Makes you wonder who will show up to buy them moving forward? The blue lines show the Fibonacci retracements for the rally from mid-April to mid-May. Note how price respects the levels, today dancing around the 1606-ish 50% Fib and closing at the 1588-1592 62% Fib. There is a lot of air underneath. The brown line shows some support at 1580-1583.

The lower low in price occurs with positive divergence on the histogram, stochastics and money flow so these indicators are agreeable to seeing a bounce.  The MACD line and RSI remains weak and bleak wanting to see additional lows after a bounce occurs. The weekly chart is weak and bleak so perhaps the daily chart will lead to some sideways choppiness and then another down leg. China is a major concern since a global banking crisis a la the 2008-2009 financial melt-down can throw everything into a downward spiral. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.

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