Hutch
02-10-2007, 06:37 AM
Here are a couple of charts showing the action on the S&P over the past several days. Using Fibonacci on a 10 min S&P chart we see how there was profit taking today. The 10 min chart shows how hard the sellers pushed today and how price action landed right into the buyers Fib. levels. As you can see how it bounced off the 50% retracement. The 2nd chart of the S&P shows a daily chart with Fib. levels. Same set of green numbers as in the 10 min chart. In looking at the last leg up on the daily(Starting from 1/26 the buyers have been marching upwards.) These past few trading trading days it was a battle at the top between the buyers and sellers, and with the sellers winning today. The sellers were just looking for a way to win this battle and with the comments made by one of the fed's today, it was just what the sellers were looking for.
10 min chart
http://img2.freeimagehosting.net/image.php?a62a3d8be0.jpg
Daily Chart
http://img2.freeimagehosting.net/image.php?09126fad59.jpg
In looking at the 10 min please note that the Fibs. were drawn at the high of 2/7. With this battle between the buyers and sellers we knew ahead of time, before today's sell off where there might be some buyers waiting to jump in. In this use of the Fibs. I look at the 38, 50 or 62% for possible areas of where buyers or sellers maybe camped out at. In todays' case they tried to run past the 50% but as can be seen, the buyers stepped in at around 1433ish area. Please note the buyers fibs are green and the sellers are in red.
In this 10 min chart you can see where sellers maybe camped out (Red fibs) This is a forcasting tool for the next few days of trading. You now know ahead of time where if the buyers push the price upwards where there are some possible sellers waiting for them. Since I live in the Midwest of the US and with as much cold and snow that we have had should be a good ole snow ball fight between the buyers and sellers. The sellers goal is to break the buyers fibs. with the goal of breaking 1416.95 or lets just say 1415 as a round number. The goal of the buyers is to break the sellers fibs. and make new highs. Just keep in mind with your trading this coming week that if things get rather choppy, refer to this chart seeing where one side is camped out. This may help give some reason as to why it is choppy.
Hope this helps give some perspective on the market and with todays action.
Hutch
10 min chart
http://img2.freeimagehosting.net/image.php?a62a3d8be0.jpg
Daily Chart
http://img2.freeimagehosting.net/image.php?09126fad59.jpg
In looking at the 10 min please note that the Fibs. were drawn at the high of 2/7. With this battle between the buyers and sellers we knew ahead of time, before today's sell off where there might be some buyers waiting to jump in. In this use of the Fibs. I look at the 38, 50 or 62% for possible areas of where buyers or sellers maybe camped out at. In todays' case they tried to run past the 50% but as can be seen, the buyers stepped in at around 1433ish area. Please note the buyers fibs are green and the sellers are in red.
In this 10 min chart you can see where sellers maybe camped out (Red fibs) This is a forcasting tool for the next few days of trading. You now know ahead of time where if the buyers push the price upwards where there are some possible sellers waiting for them. Since I live in the Midwest of the US and with as much cold and snow that we have had should be a good ole snow ball fight between the buyers and sellers. The sellers goal is to break the buyers fibs. with the goal of breaking 1416.95 or lets just say 1415 as a round number. The goal of the buyers is to break the sellers fibs. and make new highs. Just keep in mind with your trading this coming week that if things get rather choppy, refer to this chart seeing where one side is camped out. This may help give some reason as to why it is choppy.
Hope this helps give some perspective on the market and with todays action.
Hutch