Friday, March 25, 2011

SPX 500

The S&P chart is turning back up with the upper swing point at 1332.28. This is a critical price point. A break above this level will supplement the fact that the 21 day HLC exp. moving averages have turned up. The downtrend line from the Feb 18th high is currently being tested--if this is successfully taken out the markets could rush up into the harmonic resistance at 1360-1365. If the previous rallies are multiplied by 61.8% and added to the latest pivot low (1249.05) the result is a measured move to 1354-1364--right in line with the harmonic level calculated on the March 16th update.
The potential for a huge move to the upside is present. If an impulse wave commenced at the 1249.05 low on March 16th--(1.50 cycles from the 8/27-11/16 lows and 120 days from the Nov 16th low @ 1173.00)--and it is related to the two waves since the 8/27 low--a measured move suggests a rally to the 1420-1440 level !!!!!!

The 45^ fan line from the 1173.00 Nov 16 low is currently at 1301.00 (support)
The 45^ fan line from the 1344.07 Feb 18th high is at 1310.07
The 36^ " " " 1319.37
The 30^ " " " 1324.44

The Support harmonic from the previous lows is 1173.00-1039.70 = 133.30 + 1173.00 = 1306.30

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