Equity indexes face resistance, possible reversal

Several equity indexes are nearing significant resistance levels including the cash S&P (SPX) shown below. While not largely followed, the 78.6% Fibonacci retracement level offers a great opportunity for a reversal. The chart shows that SPX has reversed 78.6% of the move from the May 2011 high to the October 2011 low on Wednesday.

This provides an opportunity for a reversal, as does the testing of the 200-day moving average in the financial select sector spider (XLF) shown below.

David Wienke runs Triquetra Resources Ltd. in Riverside, Ill. (www.triquetraresources.com).

About the Author
David Wienke runs Triquetra Resources Ltd. in Riverside, Ill. (www.triquetraresources.com).
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