Musings

Lots of really ugly stuff out there. This is a bear market, I guess.
One of these days we'll get a big pop up-- another 200 Dow points/25 SP points or so.
The question will be, what after that--up, or more down.

Below is the daily SP chart


courtesy of stockcharts.com


I drew the blue support resistance/lines first. Honest, I did.
Then when I used the fibonacci tool--two of the fib retracements lined up with the S/R lines I drew, confirming their significance.
Bottom line--SP sits above one fib, below another.
Yeah, it could make another run for a new high, but there's a lot of resistance to slog thru on the way--first 1162, then 1175,then 1200. THEN, I'd get bullish.
So, hypothetically, a big 20-25 point SP up day would get within striking distance of 1175. It will happen, one of these days, (of course we may go 20-40 points lower before it does), but the real issue is what happens after then.
It's going to take more than one good day to turn this around.
Good luck, and let's be careful out there.