This S&P 1070 level is stubborn but the more times you hit a level - either to the upside or downside, the more it weakens. Eventually it breaks. I feel like I am doing this trade over and over (because I have!) but once more let's try the short of TNA/BGU combo. Did not work Friday, and with existing homes data tomorrow we have risk of whipsaw but I'll give it another whirl.
We have a mini Fibonacci level here at 1070 as a 50% retracement of the July low to August high move.... for those who practice the dark arts here is why S&P 1070 has been so stubborn.
[click to enlarge]
Amazingly the 61.8% retracement lines up perfectly with that low in July (1056) to boot so is an obvious next level of support.
Short TNA/BGU in fund; no personal position