Dow hit resistance at 8230 and dropped like a rock. Bear trap or textbook head & shoulders we shall see.
It's actually an extrapolation based on the correlation of the currency pairs I mentioned (with the S+P) and where I expect them to go.
OK, can i ask you for more than a one-liner please. I ask because there is seemingly no support or resistance tests that have occured at S&P 850. I'm not a forex guy, i'm just trying to understand.
Sure. but I don't have the exact numbers here at work, but here goes... The correlation between AUD/JPY is here (though my numbers at home are slightly different)... http://forexautomaton.com/research/...-of-financial-crisis-spy-and-audjpy-2007-2009 Based on my projected analysis, I expect AUD/JPY to retest the 68 area, which I calculate to be about 850 on the S+P. I also look at the AUD/USD correlation as well and factor that in. That kinda make sense? So while there probably are no resistance levels on the S+P as you say, I'm translating my forex resistance area into the S+P so we both speak the same language.
Watch the yen crosses for equity direction. I use guppy mas to visually see the strength of the move. I don't need complex algos to tell me the yens are moving. Aussie correlates better with the precious metals than equities. Aussie should hold up better than the other majors should the government's price fixing fail. With the spx trading at ~14.9PE and int rates climbing they will force another liquidation. The excess debt must be washed out in order for us to move forward [recovery].
On a beautiful friday morning, life is good. Isn't it great that you can take b. rowshan to the bank everytime amigo$ !