Stock Markets Update 8-18-11

Stock Markets Update and
Forecast 8-18-11

I commence with my gratitude to The Creator

S&P-500 level of 1,200 being reached and coinciding it with the time cycle of 08-16/08-17 have proven to be fatal for the markets' recent rally.

Markets have confirmed the direction of the markets.Market has not only broken the support of the low of day on 08/16, but also very important support at the highs of three highly volatile days of 8/18-8/10, which attempted to market a near term bottom and started 850+ points rally of Dow Jones or 8+%.

When a market is unable to maintain the counter trend move beyond the 38.2% of the previous trend, then previous shall remain dominant and market shall continue to move in the direction of the previous trend. Once market break the low created in the said three volatile days, then it is heading much lower. Next SPY Targets for example are %107.8 and $104.20.

Stock Market Time Cycles 8-17-11

Market Analysis/forecast 8-17-11
S&P-500

I commence with my gratitude to The Creator

Markets have tried to trade above 1,200 level of S&P-500. But it keeps hitting the resistance. 8/16-8/17-11 is a time cycle turn window. The price resistance lies at 38.2 retracement level of 05/02 high to 08/09 low and it is also 50% retracement from break down from 1,300 level.
 Therefore, markets are under strong pressure to trade lower due the time cycle and price level. Market must not break the yesterday's low. Breaking the 08/16 low shall make lower low and thus it would change the current up trend into the change of trend, technically.