SP500 Continued

For now we have labelled Nov 2 as the Primary cycle low with an eye out to the next week, that we could get another lower low. This maybe wishful thinking. Following is our updated chart.



Other items to note MACD is continuing in negative divergence to price and weekly volumes continue to be quite low. Where have all the buyers gone or are funds and hedge funds trading amongst themselves to drive price up.

If, however, the SP500 breaks 1100 - 1110 decisively then get long, or at least cover any shorts, as it may signal a large move up.

Other interesting things to note.

In trading days Mar 6, 2009 to Nov 13, 2009 was 1/2 the number of days from Oct 11, 2009 to March 6, 2009.

In calender dates Mar 6, 2009 to Nov 17, 2009 was 1/2 the number of calendar days from Oct 11, 2009 to March 6, 2009.

Nov 16, 2009 is 178 trading days from the March 6 low (178 /2 = 89) a fib number.

Nov 16 is a new moon from which downtrends often start. Oct 11, 2007 was a new moon.

The following chart shows a PHI time series, this time starting at Aug 11, 2009. Aug 11 was the start of the last major down move. Note the tendency for troughs to occur around the PHI dates. The next date is Nov 23, 2009.

Also on this chart the blue cicles show the new moon dates. Note the tendency for the times around new moons to denote crests from which drops start. Not all the time, but it is there. More about moons on a future post.











Following are Pivot and 2 levels of resistance and support for Nov 16, 2009. This is an old technique that often still works.

Pivot Point $1,092.19
R1 $1,099.09
S1 $1,086.59
R2 $1,104.69
S2 $1,079.69

Amidst all the noise of daily and intra-day charts it is best to look at a weekly. We are very close to a 50% retracement of the move down from the Oct 11, 2007 high to the Mar 6, 2009 low. See the chart.



To summarise we are 50% of price and time.