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

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

Comments
comments powered by Disqus

eNewsletter Signup

Get the latest news and timely trading strategies for stock, options, forex, commodity, and financial derivatives markets with Futures' Daily Market Focus - FREE!