Since retesting the August low, the market has made a triple bottom. Since then the market has rallied significantly, and is now approaching key areas of resistance that I will be watching closely. The first test is the 50% retracement at 194.37. This is where the market rallied to earlier in the month after it first tested the august low before selling off. There is good confluence at the 50% retracement level as there is a fairly significant trend-line that has acted as both support and resistance in the past. If the market can convincingly break and hold this first area of resistance, I would then set my sights on the 2nd test level, 197.5. The .618 retrace is another popular Fibonacci number to look at because it will be testing the downward trendline created in December. As for key areas of support I am watching around 187 and 182.
What I love about chart analysis is that there is always more then one way of interpreting them. What key areas will you be watching? Please comment and share!
I decided to use the high made on 12/29/15 to create the fib Retracement instead of the high made on 11/04 because of how the market sold off after it hit 50% retracement .