· Sun: Ben Bernanke Speaks on CBS 60 Minutes 7:00 PM ET
· Mon: Industrial Production 9:15 AM ET
· Tues: Housing Starts 8:30 AM ET
· Tues: Producer Price Index 8:30 AM ET
· Weds: Consumer Price Index 8:30 AM ET
· Weds: FOMC Meeting Announcement PM 2:15 ET
· Fri: Ben Bernanke Speaks 12:00 PM ET
Other economic news reports are Housing Market Index Monday, Petroleum Status Report Tuesday and Jobless Claims Thursday. Visit the Economic Calendar on the Links Tab for a more in-depth look at economic data.
Using a Fibonacci Retracement from the previous swing high we’re sitting right between the 38.2 and 50 retracement levels. Fibonacci Retracement’s are quite subjective on the level at which the study is drawn, therefore we will use these numbers as a loose range of support and resistance with the 38.2, 50, and 61.8 holding the most weight.
It would be expected to see profit taking in the week or two ahead so a move to the S/P 800 level may be a stretch. If we do begin to sell off one of two things are likely to happen. We see a move lower that does not break the previous low, at which point we put in a slightly higher low. Or, we break the all mighty 666 level where a move down to the 650 area on the S/P would be likely before the bears have had enough and the bulls step back in.
Watch out for news this week, there’s a lot of it so stay on your toes and have your risk managed.