The 5 Day Average of the Put to Call Ratio barely reached the key 1.25 level on
March 28th (point A )which was followed by a low two trading days later.
Although the market has bounced the rally so far has been rather limited.
Meanwhile there are a couple of scearios to watch for in the S&P 500. The
first scenario is that the rally from the early April low is just a small "abc"
affair. The target for "c" would be just above the 2700 level.
This would then be followed by a retest of the previous low at 2533 or a
slightly lower low down to the 2467area. 2467 is the 38.2% Retrace from
the most recent high.
The second scenario is that the S&P 500 is developing a complex Triangle
pattern. In this scenario, the S&P 500 would rally back to the top of the
Triangle near the 2750 level (point D), which would then be followed by another
drop back to the lower portion of the Triangle (point E), as the pattern
continues to evolve.
Amateur Investors
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