DJI bounced off the 59% fib but we still have this 20596
|S&P 500 27/03/17
S&P bounced from 2322...and guess what....yes...they did exactly what was expected...they took the market up to the Friday close virtually to the tick...The US does not like these Friday/Sunday gaps and 9/10 they wll take us back to where they closed...It was a really simple way to trade many years ago because whatever Asia did Sunday night we looked at where the states closed and knew that was where we was heading...Just a little titbit for you who have not worked the markets for many years....So now what...well.. we are still hanging about this area....sellers down under 2330 hoping that the market will fail...Now as well as being the closing price on Friday night 2345 is also the short term 38.2 Fib...so unless we break and hold above here the market will remain under pressure...2322/17 remains the downside target...Now if we break and hold above 2345 then there is a good chance of 2352/55 resistance band to be tested. Above 2355 and we have 2361/63 break point as a target.
DJI bounced off the 59% fib but we still have this 20596 area that is going to prove to be difficult to break.. I would sell here...and keep stops above 20625....because if we do break this barrier there is a good chance that further upside moves will be evident and we could see 20735 to 20755...failure at 20596 sees retreat back towards 20435 once more...
Nas is the worrying one....it hasn't even got to its first 23.6 fib which is at 5304...we are up slightly on the close from last night but we do need to break and hold above 5400 to take the pressure off the downside...If we can do this we can reach the break point of 5430 where we would be sellers....and contemplating a Double Top....This is an easy trade to do because stops are tight...above 5450 and any shorts are reversed.....
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