Saturday October 21, 2017 @11:11 pm edt.
Look at the 10 year Monthly Chart below of the S&P 500 ($SPX) Bright Horizontal PINK line. See it?…That’s the current 600 MA of the ($SPX) Notice, how it starts on the bottom left of the chart below at 1,991 the July 15, 2016 “Brexit Exit Low” The reason that is so potentially prevalent now is because the index if its new all time high of 2,575.23 was indeed the top of its 1,810 February 11, 2016 range. 765 incredible death defying points bull market points without even a 31.8% retrace much less a 50% or 61.8% one! Then, it’s key Fibonacci Retraces would be 1st retrace = 2,331. 2nd retrace 2,192 and 3rd and most important HEALTHY Retrace would be 2,102. Now, the most common of those 3 key retraces is the easiest one in terms of math is of course the middle one at 50%. That retrace is 50% retrace at 2,192 and the 600 MA is currently at 2,189.31! (The error rate ion an index trading north of 1,000 is =+5%-5%) That’s less then 5 points! Furthermore, look where the line 600 MA was on July 15, 2016 when the “Brexit Exit Low” took place at 1991. The 600 MA was almost exactly at 1991. It’s not hard to see on the chart below that the 600 MA is the current line in sand for support in the 2 yr 1810-2575 range. The reason the 600 MA is used is it is an average of an index over approx 2 yrs trading days. and when a range is created in 2 yrs it has in the past been an excellent indicator for traders for support. Just. like any technical indicator, 2 indicators intersecting at nearly the same exact number makes the 2 indicators at least 2xs stronger then 1 indicator would on its own. Again, there are of course many other factors, that will go into starting on this coming Monday October 23, 2017 @930 am edt as the November 2017 Options Contract (now the front month contract goes into play) if whether or not this past Friday’s 2575.23 all time high was indeed the top of the 2 yr range from 1810 and the 8 year range from 666-2575 One, thing is for certain though. It will be unprecedented, if the S&P 500 ($SPX) continues to go higher from here on almost all technical indicators I have spent countless hours researching the past 30 days except 9 trading days prior to October 19, 1986! Do, I need to remind everyone again what happened on that fateful day that will hopefully live in infamy as the worst single day in Wall Street Major Index history…. Al though at times I’m not convinced the way this market has gone “Up and Up” on rumor curiosity of trump and GOP3 and air and on Friday on “kitchen sink quarter” numbers from the world’s largest publically traded industrial General Electric (GE) I’m not so sure!?!?….
More to come…..