Still amazed by the basics

Even though I have been studying technical analysis for many years, the basics still amaze me sometimes. For example, the high of the COMPX today was 1426.76, which is almost exactly the same as the high of July 17, which was 1426.28. Almost a perfect double top today! Funny how that works. . .

Looks like the COMPX is also against the upper channel resistance of the uptrend that started on August 8. Looks like we may have a bit of a pullback tomorrow. Noticed some divergence between the Naz and S&P today too.

 

Here it is. . .

 

I see a bounce underway from a double bottom at 7/24 and 8/05!

Ed

 

Edilgone,

I think we may be looking at different time frames. In the intermediate term (several weeks), I agree with you that we probably go higher. I was just referring to the market taking a break during the next one to two days. But I could easily be wrong about that too.

 

I suspect you're correct about a pullback tomorrow.........its Friday and that's why. IMHO

maybe not though )

 

you are amazed and this basic technique you are speaking of doesn't even mean anything unless Thursday was the top.

for all you know, it could roar higher Friday thereby nullifying your amazement and showing the true faults of this basic TA. Theres a reason it's basic. Its cause it only has a 50/50 chance for predictive value.

Now if you combined the technique with something that isn't so "basic", such as volume resistance, you might have something.

 

The Nasdaq also showed relative weakness to the S&P going into Thursday's close, not to mention the fact that the SOX could not even get out of its own way. With the SOX not leading yesterday afternoon's rally, I would be surprised if the Naz goes anywhere today. Just my 2 cents. . .

 

One thing for sure, it will either go up, down or sideways.

 

I'm going out on a limb and predict that it will go either up or down -- not end up unchanged.
Ed

 

"Even though I have been studying technical analysis for many years, the basics still amaze me sometimes. For example, the high of the COMPX today was 1426.76, which is almost exactly the same as the high of July 17, which was 1426.28. Almost a perfect double top today! Funny how that works. . "

it works that way because ta only works if enough guys are watching for that signal and act on it.therefore the most popular signals work the best.