Updated 1 minute chart of SP500 at 1,121 Level on Dec 23

Dec 23, 2009: 3:39 PM CST

Following-up from my prior post “Knock, Knock, Knocking on Fibonacci’s Door,” I wanted to post a quick update on the current intraday S&P 500 Index chart to see just how important this level is and how buyers and sellers are playing ‘chicken’ at this level.

Who will be the first to … crack?

The morning rallied quickly into the critical 1,121 level (official 50% Bear Market Fibonacci Level), formed a slight divergence, and then backed off sharply from the level (ignore the intraday gap in the index).

Price formed a 5-wave fractal move into the 1,116 intraday low on a positive TICK and momentum divergence, then began to rally again to test this upper resistance zone.

Nothing stopped the price from challenging 1,121 again, but this time a “Rounded Reversal” or distribution pattern formed at the level everyone is watching (or should be).

We see negative TICK and Momentum divergence forming at these levels too.

Odds are we back away from the 1,121 level into the close.

I’ll discuss this more, as well as describe and define trade set-ups along with teaching these concepts in today’s Idealized Trades Report for subscribers.

Become a member to learn intraday trading tactics, get access to all archives (see multiple examples of the concepts and trade set-ups), and also learn what biases to expect for the next trading day.

Corey Rosenbloom, CMT
Afraid to Trade.com

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2 Comments

2 Responses to “Updated 1 minute chart of SP500 at 1,121 Level on Dec 23”

  1. pipercolt Says:

    Think I'm getting indicatoritis!

  2. pipercolt Says:

    Think I'm getting indicatoritis!