Here is the upside down dragon from Friday, posted live (while it was happening) in the ES thread: Upside down dragon indicating a 863ish 3rd top. Height is 7 pts, Failure was at 857.... (reference to futures prices) This chart is showing the cash: The top was at 863.75 almost exactly the 857+7 projected value. The drop from there was rather small, only went down to 861 before the upmove continued. Again, the dragon doesn't predict the size of the drop/rally from the 3rd top/bottom. ----------------------------------- It occured to me that this dragon pattern can be used to determine what kind of market we are in. In the beginning of the thread I mentioned that in the upside down version the 3rd top comes around 80% of the Height. This was true in the bearmarket of the begining of the year. But since we are in rally mode the 3rd top comes from the Failure at exactly the size of Height. So, my theory is that when this happens we are in bullphase, and when the 3rd bottom is coming at the almost exact size of the Height, then we are in a bear phase...
This is the 10 days / hourly NDX chart. The 3rd top played out actually twice, both times dropping 20 pts: Height: ~60 pts Failure: at 40pts 3rd tops: 58 and 60 pts from Failure Interesting to note, that the corresponding SPX and DJX charts don't show the same pattern...
But one of the terrific benefits of paying attention to Pek's pattern behavior is having a good Target in mind for when that Triple Top or Triple Bottom does bite the dust.
..and another one, showing it on the NDX chart: Height was 19 pts, the 3rd bottom came 20 pts from Failure. On the SPX chart it overshot the projected bottom by 2 points, nevertheless bounced from there nicely... Edit: Here is the SPX chart showing the even more advanced rally from the 3rd bttom: Height was 13 pts, the 3rd bottom came in at 15 pts, probably because we were recovering from the pre-open gapdown...
Here is a variation of the NDX chart posted 3 days ago. This time it is the SPX 10 days/hourly chart: Height: 50 pts Failure: at 25 pts (perfect) 3rd top: 40 pts from F. (80% only) Since we only went up 80% of the expected Height from Failure, this upside down dragon might just signals the end of the bullrun, as I theorized a few posts ago. Another reason for not going higher was the upper BB, not shown on this chart...
hey, ammo, coincidence? look at the Prices on the daily chart of the SPX included in the quotation you posted. cue Twilight Zone theme.