Monday, May 18, 2009

Just a little wiggle room left...

We closed right on the 61.8% retrace from the low. I had expected it to go down to the lower trend line of the blue wedge before bouncing, but it decided to break out of the wedge right away. Right now it is looking to test the upper lower trend line of the wedge that started on 03/06.

The VIX:SPX has a little room to go to the lower trend line so I suspect SPY might have just one more up day left before another sharp down turn. Which looks like it should test the black trend line in upper chart.