Interactive Widget --SPY Mimics S&P 500

Monday, October 24, 2011

Monday 10-23

As of 1:15 p.m. the SP500 has reached a daily high of 1254.69.  This is getting quite close to the 66.67% retracement level of the decline from May 2 to the October 4 low at 1258. This still looks like a counter-current move with more declines to follow.

Update:  After rising from 1238.72 at the opening, the SP500 leveld off and spent the afternoon oscillating around the 1253 mark.  It topped for the day at 1256.55 shortly before 2:00 p.m., made another stab above 1256 shortly after 3:00,  and bounced in at 1254.19 for the close.  Momentum is down from a Friday morning peak, slid lower all day, and now is about zero.

On the other hand, the animal spirits were active today: contrary to what I said on Friday, the NASDQ was up about 2.4%, the SP about 1.3%, and the DJI only about 0.75% - inverse to relative blue-chippiness.

Back on the first hand, 1256 is close enough to 1258 to quality as a 2/3 retracement, as far as I'm concerned.  Not to say that the recovery is necessarily over quite yet, though - we'll have to see what happens the rest of the week.



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