Fibonacci Financial: Wednesday

14:30 ET

It's rarely a good idea to short before there is confirmation, but here is what I was looking at last night. My indicators were all pointing down, and important Fibonacci ratios being tested; it seemed like a pretty good bet. Volume has receded since the second hour surge and each hour since has made smaller gains. My guess is that all those who what to be long may already be in. Candlestick analysis had traders short as of last Thursday and the stops were close, but Candlestick traders are now long after today's confirmation of an engulfing white candle. So it's about as wise as standing in front of a moving train to be short right now, but I still have a gut feeling that the Fibonacci levels are significant. The next level is near 1200 SPX. The second chart will show that the market looks like right now.

Here we are now. As you can see the indicators have turned bullish since last night. Price is continuing to ride the gray line of the Andrews Pitchfork.
While price continues higher there is divergence in the MoneySpy as the peaks are not getting higher, but instead lower.
HisNobs is loosing momentum, and may cross back into bearish territory. Until this Blue fork is broken, the trend will be up. Even so, I had a very strong feeling last night and thought I should go out on a limb to call a possible peak.

Currently there is strong support near 1150, 1122, and 1090. If these levels are broken the market will be in a confirmed Bear trend. 1040 and 950 will then be targets.

It is difficult calling exact tops, but this looks like a possibility.