Thursday, August 20, 2009

Few extra thought on “what-if-when”

1005.50 on daily bar close is TSDT risk level
SPX closed above it twice and sold off immediately.
So, what happened yesterday - SPX bounced off TDST Resistance 979.50 (acting as support for now), it will attempt to hit 1005.50 again and if it will fail this time on the way down it will break 979.50

The first step toward this path would be SPX closing below 1004.09 tomorrow (Aug 20th) in order to keep Buy Setup intact

Interestingly enough if that happens next TDST (of prior setup) support is 942 and it is 50% retrace for W4 and since W4 down has to have minimum of 13 bars 50 SPX points do not look impossible.

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