Saturday, May 1, 2010

S&P 500 ~ Fractal 1 May 2010

I actually expected the market to test 1170 by the end of this week since the fractal was suggesting a 50-point-decline. So far, we've got a sell off to 1180, bounced from there and almost retested this level on Friday.

In the 2007-fractal we can see a similar pattern:

If the market doesn't decline below the Wednesday low of 1182 we should see a nice rally next week.

Should however the SPX decline further I think it will test the 1170 area as I originally expected.

Gonna post EW counts later ; )

Edit: Inside the red circle you can see a rally from the lows and then a decline that almost retested this low. In 2007 the rally had a length of 28.12 points and the decline 22.88 points. Today the rally had a length of 27.74 points and the decline 23.04 points...