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.

[Aug 4, 2010: Amazing Fibonacci]

Short TNA/BGU in fund; no personal position