SPYDER ROADMAP 2011/2- Airpocket UPDATE

On Sunday, June 12, 2011 we said:

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 - THIS IS WHAT HAPPENED THIS WEEK!!
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 of character needs to show a shift of the RSI into the 20-65 RSI BEARZONE to confirm the BEAR - HAS OCCURED
6. medium term MACD: neg. Divergence & break

CONCLUSIONs:

1. We have entered the airpocket with a material breakdown - DONE
2. expect a test of the 200d SMA & the March 2011 LOW - DONE
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 - DONE
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) - WE ARE HERE RIGHT NOW
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)