Sunday Homework

Someone asked me on Friday for some comments on the SPX or S&P500 cash charts.

We are basically in a range from 3200 to 3590. Call it 32-3600 or about 400 handles. a break of the range should move about 1/2 the distance of the range. So, a break above should take price to 3700. That is the strategic area I would look to be thinking of taking shorts. A breakdown should take us down to the 3200 area. That is also the 200 EMA and I would be comfortable thinking of longs near that area.

The 50 % move, if you wanted to join the ramp up for the last few days would be to buy the 3400. Tactically, that area would be an interesting buy with a stop under the .618 area.


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