Yesterday:
The S&P hit both my forecasted targets yesterday for the first resistance was 916 and we hit a high of 915.57 and hit a low of 896.46 near my forecasted low of 894. Prices failed to rally right off the open, suggesting further weakness in a failed rally.
“Traders need to watch for break of the 900 range, and we could see a move to the 886 range.”
“It is my opinion that this move may be over and we could see a corrective move break hard, but prices must break some important ranges to confirm that for me. In my mind there is nothing that will prevent prices from reaching my 400 range target.”
Today:
We should see the continuation of the corrective move that I called on May 7th, and we should reach yesterday's price target of 886. Since we have violated the 900 range we are seeing further weakness. We are seeing the retracement of the main move. Traders need to be mindful of support ranges that could come into play within this swing.
Support / Resistance:
916-918 2nd resistance
907-909 1st resistance
886-888 1st support
866-868 2nd support
Notes:
Many of you that have followed my comments understand what we must now see in this price movement. Those of you who are new here and it is important since we have a valid uptrend to keep in mind that the trend is still intact and corrective moves are normal, if prices are to push higher. Our advantage as analysts is that we know the price ranges that support and strength should come in. If we do not see the commitment from the market, we realize that we will retest her prior lows. Although, I feel that we will retest the prior lows, and eventually break them. A prudent trader will understand that we will see were could see a bounce near key retracement levels from this swing.
Patrick Hughes
Gann fann
