Well, my predicted reversal came one day late. But now what?
1200 might be tough to crack being smack dab in a consolidation range from 2010. Fib retracement as shown. After that we might test the 1260 (6/13 low and 61.8% retracement) where I'll be looking to dump more long positions.
A wait and see approach is probably the most prudent thing right now.
PS I've been bothering a lot less with trendlines in analysis. For one, you can easily get drastically different interpretations depending on whether you use a linear, semilog, or even a log plot. Number 2: Traders don't have variable supports and resistances in mind while they work their tables; they have a fixed number. Support and resistance (and esp. volume analysis) is where it's at, and gives a better picture of supply/demand. Since trading is basically a self-fulfilling prophecy, you want to use what everyone else uses; for big institutions, that is price/volume action, not indicators or random sloping lines.
