Wednesday, November 12, 2008
Very strong possibility of a good bounce here.
this set up appears much more promising than the wedge set up from a day ago.
If it occurs, whether it is a rally or just a bounce within the consolidation zone is another matter.
Multiple reasons for a bounce.
1. convergence of trendline and triple support.
2. v oversold on 60 min time frames
3. angle of selling is steady but not steep and similar to the last move down
4. RSI/ CCI below 20
5. OPEX/ G20 meeting upcoming
6. SPY has just completed CD leg which was equal to AB. Within CD leg, another harmonic AB=CD sequence
If support breaks, stop is set around 81-82. This seems almost too set up to be true so if it fails, I will fold immediately and reassess.