Dow fell short of the first target of 12324/32 as the market took a tumble once again towards the 12162 target which as stated yesterday was good support and did hold this sell off as predicted.
The bounce has been held by the first Fibonacci level of 12275 but being oversold in the short term we could still hold to support at 12178/62 again today. However if this support were to give way and we hold a break below 12140, we look for further weakness down to 12100/90 and then 12058/36 if today’s non farm is really that bad!
Now if we can hold and head higher we look for a return to first Fibonacci level of 12275/80. If we manage to break above here today look for 12305/13 and then perhaps a challenge of 12324/35. This looks like very tough resistance today but if we can break higher through 12350 look for 12370/85 for a selling opportunity.
S&P has no change really…It was quite a quiet day in the market with good support once more holding the downside.
Two trend lines are located at 1308 and 1304, and the med term 50% fib level is at 1311 so we do have quite a bit of support down here….It is quite a low risk trade to buy weakness hoping the previous 1302 low can hold…If we can hold this support then we shall see a return to the 1322/24 resistance initially… Now we could be making a large H&S pattern on the daily charts..Obviously this is not confirmed by any means, but it seriously something we have to be aware of over the next few weeks….
If we lose 1302 we are looking at 1295 as the short term targeted area.