The 78.6% Fib. retracement held as
SPY support today. The chart below measures the distance between the most recent swing low (the "Dubai gap") and swing high (tested on 12/04). This level also happened to be a confluence level from a 100% Fib. Extension (measured from the 12/04 high and corrective move low and projected off of the following corrective move highs). On top of it all, today's test of the lows happened on a momentum divergence.
Just another bounce on range-bound support. The last three times we bounced from this level we put in a new high on the very next day! Tomorrow should give us a reasonable clue to determine the "pace" of buying interest.
Here's another look at the 78.6% retracement level from this morning in the
SPY on a fast time frame. As measured between their most recent swing highs to lows in the opening hour:
And then, when price was testing the lows of the day price made two steep retracements and turned around on strong volume (not shown):
SPY with Up/Down Volume today:
Just another bounce on range-bound support. The last three times we bounced from this level we put in a new high on the very next day! Tomorrow should give us a reasonable clue to determine the "pace" of buying interest.
Here's another look at the 78.6% retracement level from this morning in the SPY on a fast time frame. As measured between their most recent swing highs to lows in the opening hour:
And then, when price was testing the lows of the day price made two steep retracements and turned around on strong volume (not shown):
SPY with Up/Down Volume today:
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