Wow... who hit the buy button this morning? Could this market have the juice to make it to 1500 this month? Or do we have the sell in May pullback first, and then make a run at it later this year? Place your bets.....
How about this? I would guess that the red channel bosses the white, so if we break and hold above the white channel, then a a run to 1500 and a date with the decade-long purple channel would be likely.
Red, what do you think about this take on the shoulder? Here it looks like a failed breakout with the shoulder still being intact.
Possible 123 reversal on the weekly S&P 500 chart. Also being a part of monthly 2B (test of 2011 highs and retreat back down from there) it looks like some serious bearish pressure... http://www.cornixforex.com/2012/05/possible-weekly-123-reversal-in-sp-500/
Thanks satchel and apologies for the late response. Yes it's yoohoo still enjoying the game. Been overly busy but will get a review done this weekend.
You nailed it, market did those pesky breakout failures RedTank likes to talk about. It seems market likes to fake a breakout more than breakingout itself. Fascinating.
Dow PA closed the month 14 points away from that update confirming the monthly doji candle. This was followed by a perfect reaction on the triple top resistance and shorts easily taken intraday for a potential C top. As I said this is close to a rerun and after this next contest it is likely to be ready for the real move. Before we got to the high marked 2D I was looking for the 2 Day cycle to set up for a move down and said it was the best chance since the Oct lows to put in the top. It looks like the 2 Day cycle is now handing over to the 3 Day cycle which means everything is amplified and we can see some powerful whips. The S&P has a great break point while the Dow has a little more to confirm a break. Because of the many conflicts needing to be resolved in this next move it is harder to describe than last time. I was looking for a C top meaning I am overall very bearish but I need to see the weekly upside cycle turn into a bear runner and it is not there yet. The Daily is well set up for a bounce up but that is against the 3 day cycle down that I think is the near term boss for this weeks action. On the 2hr chart it looks like we have W3 down so a bounce here for W4 followed by W5 would complete this first part allowing the weekly ABC UP energy to gas out and then give us a negative monthly close. I like to predict moves but wait for the confirmation in order to take the trade for a good prediction allows the trade to be taken very early to let it run. However with the daily against the 3 day which is against the weekly that is against the monthly this move needs daily updates that I don't have time for. SYNOPSIS I like that 3 day cycle to take her down but it needs to overcome the daily up and weekly up - that's whippy. I like this C top for a major move down. So this looks like a minor move up if support holds, bigger move down and then I need to see the weekly up fail and the real move down. If you don't have the wherewithal to trade a whippy market then C short was the one to hold and if the weekly breaks that high run with it.
Looking at London 5hrs before the US open and it is down almost 2%. When the 3D Chart is boss down and the daily is due a bounce today... if that bounce doesn't happen then the daily is swamped by the 3 day cycle. If we do get a bounce then I expect that to be counter and the 3 Day will turn it down. This is what I was talking about earlier by using a failure to get success when a counter trend either fails as expected after a short run or, if it is up against a very strong cycle, it doesn't even make it out of the starting blocks. When this 3 Day cycle down plays out I will be looking to see the set up on the weekly up cycle and it is that failure that will take us into the monthly down.