SPYDER ROADMAP 2011/2

OBSERVATIONs:

1. AIR-POCKET: the market cut through this zone with low volume meaning we can expect the same on the downside due to the fact that only a minority of participants have entered in positions around there
2. BREAKDOWN: we broke the trendline of the entire up move from 03/2009
3. SUMMER HIGH 2010: the beginning of the airpocket and the summer high 2010 align
4. Fibonacci Zone: The Fibs align with the correction levels of the late summer 2010 correction
5. BEARZONE: A change oc character needs to show a shift of the RSI into the 20-65 RSI BEARZONE to confirm the BEAR
6. medium term MACD: neg. Divergence & break

CONCLUSIONs:

1. We have entered the airpocket with a material breakdown
2. expect a test of the 200d SMA & the March 2011 LOW
3. ...if the 200d SMA does NOT hold then expect a tumble though the airpocket and a subsequent test of the May 2010 in late July (August) seems likely
4. ...if the MAY 2010 HIGH does NOT hold then plan for the FIBs (expect some sideways action around those levels given the Volume cluster in this price area)
5. ...if we break through the summer LOW of 2011 expect more than a medium term correction

• Each successful test can be the beginning of a continuation of the BULL (Think QE3)