Monday, July 21, 2008
S&P Futures 8hr
The above chart is of the S&P futures on an 8 hour timeframe. Here we get a closer view of current market conditions. As I said on my earlier post, the S&P appears to have one more modest high to make before plunging to a new low. This new high, if it even happens, should occur early Monday morning, and should remain under the 1280 area.
EWP states that corrections often are attracted to prior 4th wave areas, as well as Fibonacci retracement levels. The 1280 area in the S&P should prove to be tough resistance as it is both the prior 4th wave area as well as the 38% Fibonacci retracement level. If the market even makes it there, it should be all out of steam and quickly reverse sharply in another wave of heavy selling to a new low beneath 1200.