It's just a small pattern on the hourly charts but deserves attention from market watchers, investors and traders. The S&P 500 reached the 884 Fibonacci level I've mentioned for many days, and also a projection that Andre Gratian had at 888. Now, I will not speak for Andre except to note that he's been tracking both Elliott Wave counts as well as the A/D line. What I can point out is that the market has turned back down under these levels (along with the Nasdaq 100 doing the same at 1409.71, and the QQQQ's doing similar with the $35 level described earlier this morning in the post about the P&F chart).
These levels "ring the bell" on a number of different methods so we should not be complacent about this. Some are analyzing a pullback to about 780/790, which could be 100 SPX points or 1,000 Dow points. That's significant enough by itself. There are even methods that suggest much lower levels. It's too soon to say which may prove correct, but either one should be unpalatable to investors or traders looking to preserve long-side profits or thinking about when to take defensive positions....MORE