Whilst we be havin' fun, Do not neglect to pull up those weekly and monthly charts in "Logarithmic Scale" instead of the regular "Arithmetic Scale" charts...... It makes quite a difference over longer time spans.
Firstly, there are predictions being made in posts on this thread. Maybe not by you but others have made them. Your observations are technical and whilst you say that you were "just playing around with the chart and the possibilities" most people would conclude that the interpretation of charts in the way you have presented them is for the purpose of making a judgement on future movements in the market. onelot...............I never mentioned the word "observation". Your comment is infantile.
Not really. I don't know where the market will go next. In fact I never hold any overnight positions. I just like to be aware of what the market is doing in the longer term. For example, the fact that the S&P found buyers on the second move down to 770(its prior low) is no coincidence and neither is the fact the current leg down started after first hitting 965 resistance. Of course, noone knows what the market will do in the future but being aware of what its currently doing doesn't hurt, in my opinion.
where was the DJ about 30 years ago? 770? 774? If the S&P follows the same pattern, we sould be at 10,000 in by 2020 or so.
The market can't take off unless it first leaves a lot of people behind. Then one by one they capitulate on the idea that before the market can go higher we must first have capitulation.
Think about the 29 crash, that was a capitulation event, it marked the beginning of the bear market not the end.
The way I look at it now, the bear market started in 2000 although most didn't realize it at that time due to optimism about the economy. I think its going to be a 6 yr bear market and we are entering the 3rd year.
You've got to be kidding me . . . McGee & Edwards would definetly be at a loss to find a "head and shoulders" pattern there. By the way, for what it's worth the Bradley Indicator is saying that today is the turning point for a MAJOR move up into July of 2003. This indicator was quite good last Summer when it predicted the July lows in early Spring, and even back then was forecasting a major low for March of 2003. Check out yesterday's Bradley Forum in the Trading Section. Good Luck All.
I said I was just playing around with the chart. Also, I pointed to the potential reversal yesterday in the previous post.