View: Fuinhaz $SPY read for November 8, 2012 | SharePlanner

Market trying to bounce after yesterday's extraordinary and long waited sell off. Today's economic data show that jobless claims fell by 8,000 to 355,000, and the trade deficit came lower than expected at $41.55 Billion in Sept.

That is all very interesting, but as I mentioned ysterday, I like to follow what the charts are telling me, and last night I was a bit surprised to see that the $NYMO (McClellan Oscilator) did not dropped as much as I was expecting to get my bull hat back on today.

As one can notice on the pre-market we are trying to stay above the 140 level on the $SPY, but nothing is more important than two level for the bulls to conquer.

The first one being the 140.13 (2nd Fibonacci Retracement Level). That would give us the ability to put a floor to a range mentioned on other posts 140.13 - 143.19. That would keep bears and bulls bored for a while as they expect us to find direction.

The second level that is very important today is the 140.64 level. That is a level that I have identified and mentioned numerous times before when we are around this 140-141 level. Crossing it would give "today's" market a nice boost back to the highs of the range just mentioned on the previous paragraph. You will see a lot of panic short covering.

Now I also got to keep my readers prepared in case we fail crossing these two important levels today. In case we cannot cross 140.64, and start selling hard again, the 3rd Fibonacci retracement level is around the 137.67 level. So in case we fail, you know where we will most likely go.

$SPY 1st support is 138.66, 2nd support 137.67 (3rd Fibonacci Retracement), and 3rd is 136.80.

Be sure to try SharePlanner's Options Income Newsletter with a Free 14-Day Trial