One November 2nd we had lows in the SPZ at 1026 and a low in the DJZ at 9596. We proceeded to have a 3 week rally from those levels. SPZ posted a new 9 month high on Nov 20th at 11125.25, for an 86 handle run-up. DJZ rallied to a new 9month high on Nov 23rd at 10,486, for an 890 point run-up… Impressive. However, its now time for a correction, and tonight’s issues with the Yen and the Dubai Bank may be the catalyst the market was waiting for.
Support in the DJZ is at 10,146… 10041 and then 9931 if the wheels really fall off.
Those are the 38%, 50% and 62% retracements respectively.
Support in the SPZ is at 1079.25… 1069.25 … and 1059.00
These are the same retracement levels from that up move.
You have to be aware of these levels. If we break, we will see these levels as either temporary support, or a near term low, followed by a return to the rally higher.