It looked like a bad day. There were no buyers but sellers were not all that interested either. Price had a slightly lower volume down day but remains above the top of the previous range box. Today was day 8 of the 14 day range of the previous two time ranges.
The range from Oct-Mar shows price was rejected by the 50% retrace level. As I mentioned yesterday, price needed to make a new high soon and today it went the other direction. Support should show up around 1375 as it hits the 1:1 ascending angle. There is a chance that price could recover from today because volume was light. But the interday sure looks bad.
I was thinking/hoping price would get back to the 1:1 descending Gann Angle around 1440 of the long term range. Every day that line moves the resistance line lower. I don’t see anything at this point that says the price will not make another run up after it becomes oversold. The next run will take us into June/mid-June and should be watched as a place to take final profits from this move off the March bottom.
Charts courtesy of Stockcharts.com
As always, we watch and make our analysis. Price knows where it is going and when it is going to get there. I, on the other hand, am only guessing based on the clues price and volume have provided to us in the past.
Post Modified: August 12th, 2008 at 11:08 am
Tags: Gann Angle Fan · Market Cycles · Price Retrace · SP500 · Square of RangeNo Comments
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