The SPX briefly poked out of the Box of Miracles on Friday, but then fell back into its confines. The market has yet to break out of any of these boxes on the first try, and breaking out of the Box of Banks was a weeks-long struggle.
If the market does eventually move higher, resistance levels will likely be found at these Fibonacci levels in the Box of Bulls:
1029
1041
1049
1058
1068
1085
Here is the new 60-minute SPX chart. (click to enlarge):
Notice on the chart that the market respected the levels in the Box of Miracles. The levels served as important support and resistance at several points (purple arrows). Because of that respect, those same levels should serve as support if the market were to pull back.
If we break and hold below 1000.40 look out below. the 61.8% box of bulls is what my system wants to use as a wall where the bulls will crash to in an extreme case.
But hey 1000.40 is closer to the current level and gravity is calling too!!
the market is at 0 now (check the pic) next comes 1 then 32.2ft/s^2 http://upload.wikimedia.org/wikipedia/commons/0/02/Falling_ball.jpg
K, the physics of finance?
Maybe the market will fall when Matt stops stacking boxes upon us.
my friend has become a fractals of finance nut! he sends me links that go beyond me. I’m relating more and more with “the reminiscences of a stock operator” than anything else. almost started at the same age so I should be looking for my first million in 5 years. haha
ok back i go to read the wonderful story.
physics might not work in finance who knows. just not when goldman is god
futures are above their pivots as we speak..
/ES
R3 1044.75
R2 1030.38
R1 1018.75
P 1004.38
S1 992.75
S2 978.38
S3 966.75
Currently at 1006.00 like i said almost 2pts above pivot. look at those ranges though 2nd support 978.. if it has an euro like decline that can easlily be reached
USD/CAD just is trying to bounce off it’s pivot.
Matt,
Nice how the boxes have played out.
paula,
That Wolfe Wave really looks interesting. I may have to give it a shot once I get healed up and can devote some time. I like cycles and waves and this is one of the most interesting I’ve come across.
Thanks