Friday, March 5, 2010

3/5/10 - SPX

It looks like with the jobs report, futures are indicating a thrust higher into the open. That shouldn't be shocking considering we were dealing with a wave iv triangle which appeared to breakout into the close yesterday.

The top chart highlights yet again another Fibonacci confluence. This is one projection I am making from the impulse out of the triangle breakout.

Yesterday, waves i and ii appear to have completed with iii in progress. The green Fib represents the length of wave i. If iii were to take on the typical relationship of 1.618 of i, I show it at 1124.94 (approx). I have placed wave iv at approximately 1123.12, which would be a 38.2 % retracement of iii.

The purple Fib is a measurement of waves o-iii (i.e. measured from the end of iv blue up to where I am projecting where iii green ends). So wave v green equals .618 of o-iii = 1127.30 and v = o-iii = 1129.

Hmm. Strange how those two numbers keep reappearing.

Again, will this be right? Who knows but it is definitely worth watching to find out.


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