Thursday, August 11, 2011

A Look at Technical Support Levels for the SPYs

The above chart is a weekly chart of the SPYs with two sets of Fibinacci levels. But use the early 2009 lows but one top is from late 2007 and the other is from mid-2011. I've also drawn a tight rectangle from price levels established earlier this year.

The point of the above chart is we are right in an area where various models would place important trading levels for various reasons. That doesn't mean we will, mind you, but the possibility is there.

Notice on the 10-day, 5-minute chart that prices are moving sideways for the last two and a half days. Again, that doesn't mean we'll stay here, but it does look like the market is looking for a bottom at these levels.