Getting Cautious on the S&P
In the past week, the E-mini S&P 500 futures saw some beautiful symmetry -- i.e., similarity or equality of swings within the same direction -- that defined a very important support decision. See the daily chart below to take a look at the swings I'm discussing.E-Mini S&P 500 Futures -- Daily Source: Dynamic Trader View Chart » View in New Window »
Note the similarity among the three prior declines on the S&P, which were made after the pivotal June 4 low. They respectively brought the S&P down by 54.50 points, 55.25 points and then 54.75 points. This key support area, at 1315.75 to 1321.5, held beautifully -- and so far we've seen a rally of 63.75 from the recent low. Not only did we see symmetry in price at that low, but there was also symmetry in timing: The first two declines lasted four days, the next for five days, and the drop into the most recent low has lasted four sessions....540 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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