• fuinhaz-spy-1

Market finally pulled back after the the $SPX reached it’s 23.6% Fibonacci retracement level. I did posted this chart on my $SPY read on January 29 2013. But I am to re post the current chart so you all can see how important these levels are and why they can help you time into going in or out of positions.

fuinhaz-spy-1

So now what will happen? Well my expectation is that we will now start a 2 to 3 weeks pullback and test the 1476.32 level in the $SPX. On the $SPY that represents the 148.25 level. One other good piece of information is that the $NYMO dropped to a neutral position and not only it gives us traders an indication that we now have more than enough space to break to new highs, but also the space necessary for us to believe that a 2.5 to 3% pullback is now enough to calm everyone else before the next big leg up.

fuinhaz-spy-2

My current expectation is for us to start seeing some failed break outs, and dips will only get bought by retail investors, who will have to endure losses.

Now here is the other side of the trade. If for some miraculous reason we can push ourselves over that 1508.00 Fibonacci Level on the $SPX, then all that I just wrote is garbage. But the chances of this happening are quite small to be honest.

With no more to say, I will leave you with the current levels for the day.

$SPY 1st support is 148.93, 2nd support 148.48 and 3rd is 147.96.

$SPY 1st target is 150.42, 2nd is 150.98, 3rd is 151.32, and 4th one just for fun is 151.83.

Trade what you see not what you think.

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