Yesterday:
The S&P sold off in a corrective move after hitting both my price and time target. The market gapped down on the open and appeared to have difficulty creating a rally. Prices held my 1st forecasted support range of 908 (actual low 908.68 one).
Today:
We could continue to see a further slide here, as prices try to recover from yesterday's corrective move, but may be sold into. Traders need to watch for break of the 900 range, and we could see a move to the 886 range. If this move is over, many times you can see the last gasp before a big selloff takes place on a believe you will see prices had lower to try to stabilize the uptrend. In my opinion, I believe this is just a bear counter rally. That may be overextended and that top may be in on the short-term. In many of my comments I have mentioned that I believe this counter rally will not last long, but traders must understand that this is the last gasp before the primary trend resumes. In my mind there is no way that prices can reach the historical highs set in a perfect market environment.
Support / Resistance:
926-928 2nd resistance
916-918 1st resistance
902-904 1st support
892-894 2nd support
Notes:
Prices will try to fight this selloff, as it attempts to break the prior high, and depending upon the momentum or lack thereof it can give us signs of the possible failure in this pattern. It is important, as a trader to understand the trend is still up and to plan accordingly and do not make heavy bets to early in the pattern without factoring in the possibility that we are seeing a corrective move in an uptrend. 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.
Gann fann
Patrick Hughes
