The S&P 500 is closing in fast on its Bearish Harmonic Butterfly PRZ near 1750, less than 3% above (note: chart is arithmetic monthly, ratios close/close).
Basic rungs of support come in at X (1565, October 2007's high), followed by Summer 2011's high at B (1360-1370) and the Sep 2011 closing low near C (1130). In this context, the next major resistance zone comes high overhead at XA's 1.618% Butterfly extension D near 2050.
This pattern features a compact PRZ of ~10 points that is beneficial for devising solid R-multiple trade setups, even while making the zone more susceptible to whipsaw/failure.
Basic rungs of support come in at X (1565, October 2007's high), followed by Summer 2011's high at B (1360-1370) and the Sep 2011 closing low near C (1130). In this context, the next major resistance zone comes high overhead at XA's 1.618% Butterfly extension D near 2050.
This pattern features a compact PRZ of ~10 points that is beneficial for devising solid R-multiple trade setups, even while making the zone more susceptible to whipsaw/failure.