Discussion in 'Technical Analysis' started by Roman Candle, May 8, 2009.
Here is the 2003 chart
SP 500 May 2009 same trendline all the back to 2003.
I saw on some thread someone talking about SP500 940. That sure is an important area.
1) Pretty colors!
2) Each and every price-handle is an "important area".
If you study the range probabilities for this coming week, the 940 area is very important.
In other words, if the ADR of ES is say 22 and the AR of a week is say 50, how do you cram 110 handles of daily [5@22] range into a 50 handle weekly average range? The net range extension is what I look for to model the week and month....for this week coming the the probability to the upside would be in the 940's.
I've observed that, especially on longer term charts, opening and closing prices tend to be as if not more important than absolute highs/lows.
RomanCandle, not to detract from your idea of what's going to happen - but the two charts look nothing the same to me. They're both bottoms, but as you can see what is happening now is far steeper (more "bounce"-looking" than 2003.
Having said that, I would absolutely not be surprised if the rally continues - even though it's pretty easy to make a case for it to be fake based upon fundamentals. As the saying goes: "The market can stay irrational longer than you can stay solvent".
This guy sure has a lot of similarities to stock trad3r.
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