Sharp rally today continuing the bounce up, SPX closed up at 1125.86. Markets been overlooking a descent amount of negative news later ref, BP, GDP, initial claims, Beige book etc. It could just be a setup before we take a sharp turn down, but the number of barriers that have been broken so far is definite signal of a sharp local trend upwards. Few resistances nearby, most important is the the 61.8% retracement May high to July low at 1140. Watch it as a short opportunity. If this gets taken out then we have good room for moving higher
Some important Fib levels are in order
1) 1,576 high in October 2007 to the 666 low in March 2009
23.6%: 881
38.2%: 1,014
50.0%: 1,121
61.8%: 1,228
2) 666 low in March 2009 to the 1,219 high in April 2010
23.6%: 1,089
38.2%: 1,008
50.0%: 943
61.8%: 878
3) 1,219 high in April 2010 to the 1,010 low in July 2010. This is the near term Fib we are in right now, near term high is 1140
23.6%: 1,060
38.2%: 1,090
50.0%: 1,115
61.8%: 1,140
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