$SPX, GS, MA, CTSH, ISRG
by J ~ August 26th, 2009
Tonight’s blog post is going to be a little more advanced that usual. I will do my best to explain things. The first chart is the S&P500 over the last 2 years or so.
I have talked a bit about Fibonnaci retracement levels over the past few weeks. Tonight,I have overlaid those retracement levels on the S&P500. In last Monday’s post, I stated that 1,015 would be an area of resistance due to the 38.2% retracement level. The S&P500 broke that level and might be headed to 1,121. Let’s throw a chart pattern in the mix.
The S&P500 might have developed an inverse head and shoulders pattern over the last 10 months or so. Measuring from the neckline (950) to the head (666) we have a distance of 284 points. Adding this distance to the neckline (284 + 950) would result in a value of roughly 1,234 on the S&P500. Now, going back to the Fibonacci chart, the 61.8% retracement level is 1,229. So, the Fibonacci levels and chart patterns are indicating that the S&P500 still has room to run. Will we make it to 1,229? We shall see.
Now I am going to post four more charts of individual stocks with minimal commentary. I am going with “a picture is worth a thousand words.”
Nice high level base on (GS: 147.29 +7.51). Look for a breakout and heavy volume at $170.
Look for volume, if (MA: 206.98 +2.25) breaks to new highs. Volume is key with this stock.
(CTSH: 62.37 +1.45) was previously mentioned here.
(ISRG: 281.18 +3.86) is resting after it’s earnings announcement. Look for a breakout at $240.
Happy hunting!
September 17th, 2009 at 5:34 pm
[...] have said in a previous post that I think Fibonnaci levels are very important. Here is a link to that post. My guess is the market will probably run up 62% which would put the DJIA at about [...]
November 15th, 2009 at 6:56 pm
[...] I would also like to point out that these levels (~10,340 on the DJIA and ~1,120) are the 50% Fibonacci retracement levels as well. I went into these levels in some detail in a prior post in August here. [...]
January 12th, 2010 at 6:56 pm
[...] The S&P500 has a critical number to hold and that number is 1,121. Why is this number important? It represents the 50% Fibonacci level from the lows of March 2009. More on that here. [...]