The SP 500 is likely to pullback from a 66 point rally off the 1343 pivots. Those pivots were right at a Fibonacci fractal retracement of 61.8% of the Summer rally. That rally ran from 1267-1474 as we all know in hindsight, and the correction was a normal correction within a bull cycle.
Near term, we had a nice run to 1409 and met resistance there. We would expect a pullback to the 1384 areas on the SP 500, if not a bit lower in the coming days. The US Dollar is likely to get a bounce which will also pull down Precious Metals along with stocks near term.
We think this could be a opportunity to buy as we approach pivot pullback buy points, but of course we will monitor in the event the pullback becomes more dire than expected.
Below are charts of the US Dollar and The SP 500 Index and potential near term movements to monitor. Over at our ATP trading service we closed out long positions in NUGT ETF with nice gains yesterday as well as stocks with trading profits while we watch the pullback action.
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