Wednesday, September 29, 2010

Market Outlook

Here is how I envision the next month for the SPX:


The red line highlights what I think will prove to be a bear-market rally. The blue lines describe the future path for this rally.

The fibonacci levels provide possible targets and support/resistance levels on the way up. This is not the common way of using the fibonacci levels but it is very helpful. Notice that the next target on the upside is 1170.

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