By David Banister (via The Technical Traders) (Guest Post)
Let’s clarify the SP 500 situation here: The lows at 1101 were a convergence of fibonacci weeks, months, sentiment bottoms and VIX extremes along with major insider buying all at the same time. We rallied up in 5 waves from 666 to 1370 Bin Laden highs. At that level we had re-traced 78.6% of the entire 2007 highs to 2009 lows, a common turning point. Since then, we have had a 3 wave decline, also common for correcting a 5 wave move to the upside. The decline halted at 1101, an exact 38% fibonacci retracement of the…
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