Still Watching Retracements
The S&P 500 is still in a downtrend though it has bounced off the lows last Monday. A key tool to track the downtrend is the retracement tool. In this case, we are tracking the retracement on the S&P 500 from the February low to the September high.
There are four retracement levels. The first is the 38.2% retracement which on the S&P 500 is 2782.41. The second level is the 50% retracement which is 2734.72. The third level is the 61.80% retracement which is 2687.04.
Currently, the S&P 500 has been testing the 50% level the last four days. This action indicates that a 61.80% retracement could be in play if the 50% does not hold. Then worst case the 100% retracement at 2532.69.
Yesterday on a intraday basis the S&P 500 got as low at 2628. A move to the February low would probably concluded the downside action unless the S&P 500 just sliced through this level which seems unlikely. Pay attention.
Get the information you need to make profitable decisions first thing in the morning. Access to the information is FREE, not knowing it could cost you a bundle!
Superstock Investor Newsletter
Published once a month. Get the big picture, what happened last month and predictions for the month ahead.
Take advantage of the knowledge provided by people who live to monitor the Stock Market. People like:
Get access to information from publications like:
Not a Subscriber?
Superstock Investor's goal is to provide subscribers a steady stream of original stock ideas with an emphasis on takeover candidates. These are companies that have flown onto our radar screens as potential takeover targets, or special situations with some catalyst promising to send their shares soaring. Continue..