Marketwatch: S&P Targets 1800, Then 1760

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On Friday, April 11, 2014, the S&P broke down below the 100-day moving average, the dashed yellow line in the chart below.  It stopped at the 50% retracement level, 1816.  with this break below the 100-day, the next target is 1800, which happens to be both the 61.8% retracement and the 150-day moving average.  I would not be surprised to see this happen soon this coming week.

Screen Shot 2014-04-12 Blog Post SPX Target 1800, Then 1760

At that point, the markets will be extended to the downside, so a bounce would make sense.  How high would that bounce be?  I’m guessing something in the range of 1830 – 1860, which is essentially a 38.2% to 61.8% retracement.  If that bounce fails, the next target is 1760, which is the 78.6% retracement and the 200-day moving average.

At this point, I think 1760 is a high probability.  We would need good news to stop us from dropping to that level, in my opinion.

I am short the S&P.

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