The collision of global markets and social mood

Thursday, September 20, 2012

I Am A Buyer

Yesterday I wanted to see the S&P get above 1463.43 before a new low and the market delivered. Even though the 1445-1450 level looks as though it will get tested today, the fact that 1463.43 was exceeded makes me more confident to be a buyer.  What the market has just likely created is a three-wave structure which means that it's in corrective mode instead of an impulse down.

Based on yesterday's 1465.15 high, there is now a Fib 1:1 extension target at 1446.67. I am a buyer at these levels.  There has been very little volume with this correction.  It may take a few days, but my bet is that the market resolves higher and that 1474.51 is exceeded.

I would not want to see price near or below 1439.15 and will use it as a stop for my buying excursions.  And quite possibly as a stop and reverse level.

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