fibonacci retracement at 1228.74 on s&p 500 is major resistance

8/8/2019 Fibonacci Retracement at 1228.74 on S&P 500 is Major Resistance

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Richard Suttmeier is the Chief Market Strategist at www.ValuEngine.com.ValuEngine is a fundamentally-based quant research firm in Newtown, PA. ValuEnginecovers over 7,000 stocks every day.

A variety of newsletters and portfolios containing Suttmeier's detailed research, stock picks

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November 12, 2010 Fibonacci Retracement at 1228.74 on S&P 500 is Major Resistance

The yield on the 10-Year tested 2.783 on Wednesday versus my annual value level at 2.813,

thats a rise of 32.5 basis points since last Thursday. Gold is consolidating off Tuesdays alltime high at $1424.3. Crude oil traded to a new 2010 high at $88.63 on Thursday, and has tradedbelow $86 overnight. The euro slipped below 1.36 overnight with my quarterly value level at1/3318. The Dow tested and held my annual pivot at 11,235 on Thursday ending the sessionbetween that level and my semiannual pivot at 11,296. A close today below 11,235 gives theweek to Fibonacci over Dow Theory. Bad Deficit Reduction Ideas and The Federal Reserve isset to Jump-Start QE2.

10-Year Note (2.657) Annual and annual value levels are 2.813 and 2.999 with daily, monthly,weekly, quarterly and semiannual risky levels at 2.582, 2.380, 2.332, 2.265 and 2.249.

Courtesy of Thomson / Reuters


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Comex Gold ($1408.3) Monthly, quarterly, semiannual and annual value levels are $1373.0,$1306.4, $1260.8, $1218.7 and $1115.2 with daily weekly risky levels at $1427.6 and $1438.1.


Nymex Crude Oil ($87.69) Quarterly, monthly and annual value levels are $83.94, $78.51 and$77.05 with a weekly pivot at $86.51, and daily, semiannual and annual risky levels at $90.15, $88.22$96.53 and $97.29.



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The Euro (1.3655) Quarterly and monthly value levels are 1.3318 and 1.2709 with daily, weekly andsemiannual risky levels at 1.3933, 1.4879 and 1.4733.


Daily Dow: (11,283) Monthly, semiannual, annual and quarterly value levels are 10,848, 10,558,10,379 and 8,523 with annual and semiannual pivots at 11,235, and 11,296, and daily and weekly risklevel at 11,533 and 11,650.



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Bad Deficit Reduction Ideas - To increase the retirement age is a bad idea as corporations areseeking the opposite; wanting workers to accept early retirement to make room for younger workers.

Another bad idea is to reduce or eliminate the tax deduction on home mortgage interest. This will bethe Achilles Heel for the struggling housing market. The National Association of Home Builders isagainst the elimination of the mortgage tax deduction saying that the battered housing industry isstruggling with a 21% unemployment rate for construction workers.

Tampering with the deduction would be a major setback for today's slowly emerging housingrecovery. It would disrupt the plans of young households who are gathering their financial resources topurchase a home. And it would impose a substantial tax burden on existing home buyers, many ofwhom continue to stay current with their mortgage payments even as they struggle to make endsmeet. Diminishing or ending the deduction would exert further downward pressure on home prices,leaving more home owners with mortgages larger than the value of their property and fueling evenmore foreclosures. It is absolutely clear that the mortgage interest deduction should not be on the

table."

The Federal Reserve is set to Jump-Start QE2 - The Federal Reserve will buy $105 billion USTreasuries between now and December 9th in a series of 18 open market operations. Of these $75billion will be QE2 and $30 billion from proceeds of maturing mortgage-backed securities. BetweenQE2 and maturing mortgages and GSE debt the Fed anticipates that total purchases will average $11billion a month.

The goal of QE2 Cheaper borrowing costs will lure Americans to spend more. I doubt it! Americansare de-leveraging to reduce debt, and are trying to save in these uncertain times. In addition,many credit cards now have rates of 24% and will not be used.

The Fed expects QE2 to lower corporate bond rates, but between US Treasuries and corporate debtwill widen, just as the rate between the 10-Year Treasury and the 30-Year fixed rate mortgage haswidened since March 31st when the Fed stopped buying mortgage securities.

In my opinion QE2 is inflating commodity bubbles and caused stocks to rise from beingundervalued to being overvalued. QE2 has caused a weaker dollar and our trading partners arecomplaining.

Thats todays Four in Four. Have a great day.

Richard SuttmeierChief Market Strategist

ValuEngine.com(800) 381-5576

Send your comments and questions to [email protected]. For more information on our products and services visitwww.ValuEngine.com

As Chief Market Strategist at ValuEngine Inc, my research is published regularly on the website www.ValuEngine.com. I have daily, weekly, monthly, andquarterly newsletters available that track a variety of equity and other data parameters as well as my most up-to-date analysis of world markets. Mynewest products include a weekly ETF newsletter as well as the ValuTrader Model Portfolio newsletter. You can go HERE to review sample issues andfind out more about my research.

I Hold No Positions in the Stocks I Cover.

fibonacci retracement at 1228.74 on s&p 500 is major resistance

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