The Harmony Continues
In the segment of S&P 500 chart pictured here, the various swing points have been labeled. The movement from point I through J is equal to 123% of the quantity H to I. The movement I to J is 100% of J to K. The quantity K to L is 78.6% of J to K. The quantity L to M is 68.1% of K to L. The move L to M is 61.8% of K to L.
The S&P has been rallying during this Mercury retrograde period. How much more can it go? One possible answer is it can move up until it tests the point L. This will be a 61.8% move of the quantity K to L. Notice also at this time that price action is just poking above the 200 day average. The Fast Stochastic is now over the ’80’ mark. The coming few days after the Jan 16 MLK Day holiday will be crucial.
