Stock Markets Update 8-10-11
Markets keep pushing down. Yesterday’s rally was used to sell again, today. However, if we look at the chart, we see that today low did not violate the recent low of last 2 days. Markets closed just notch above the yesterday’s low or 08/08 close.
This area offers a strong support, which has lot of probabilities going for it. For example, current leg down is 127.2% f the correction of April – June 2010. Furthermore, there is some more clustering of Fibonacci and Gann support levels, such as it 1/3 or the total bull run from March 09 to April high of 2011. And this week low also coincides with the 2/3rd of the July 1 2010 low the 2011 high. Is that enough reason, for the rally to continue; only the price action of the market will tell it tomorrow. But we ought to be ready for bounce off the low of this week. Other alternative is the market keeps going down. However, bears are running out of the momentum. And it is last of their attempt. If market does continue to drop, then it ought to find the support at 10,450, 10,100 or 9,700 for Dow Jones Industrials. Last two numbers are like brick walls. Bears will get bruised real bad, once they hit those levels, thus giving bulls will take over the control of the markets, then. Similar areas of support for S&P-500 lie around the area of 1,098, and 1,020. Next time cycle for potential change is 08/11. If the market continues to drop, then, next time cycle shall be 50% of previous time of leg down, which 08/13 (being it the Saturday), then Friday Close (or Monday) would be the turn date for the markets. This week marks the 127th week from the end of the last bear market in March 2009.
No Matter What, This week shall create a turn for the markets. Next week, markets shall start seeing big green bars (if it does not start within next two days)
Gold Forecast Update – Gold Dropped $50 @ the forecasted price and…
NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!