The NYSE Composite Chart

Discussion in 'Trading' started by michaelscott, Jun 18, 2007.

  1. The NYSE composite chart gives a clear picture of what might happen in the near future which is a selloff right down to the 40 week moving average. In the last 3 years, all corrections have been right down to the 40 week moving average where a consolidation phase starts before any moves higher. Any significant violation of the 40 week moving average means a change in the trend and the start of a bear market.

    One might look at the markets right now and state that the momentum will continue on seeing as their stocks seemed so strong today. However, the market takes no prisoners and only gives mild hints of whats about to come. When it does selloff, it does so much faster then when it rose.

    There have been two rules of the street in the last 3 years. Buy on dips and dont get caught on margin when the dip comes. You know when your in a dip, but the next question is when the dip will happen.

    The following chart I am about to display only needs common sense to interpret.
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  2. S2007S


    To think this bull market will last forever is foolish, the bear will make a return. 50+ months without a 10% correction!!!
  3. Another brilliant piece of insight from the forum putz, michael scott.

    Bear markets aren't triggered by violation of moving averages. They are triggered by drastic changes in fundamentals or economic upheaval.

    Seriously, for your own safety you should never be allowed to be within twenty feet of a computer.
  4. This NYSE chart is a perfect bullish chart. It rises up at a near 45 degree angle and has regularly scheduled pullbacks.

    However, we are now approaching the target price of the composite chart. The top in 2000 was right around 7150 and the bottom around 4400. This gives us a target price of 9900-10200. This level is where great caution should be taken.

    A close above 10200 would make me suspicious that the index could get to 12000.

    However, I cant see the catalysts. Therefore I see the index pulling either back to the 40 week moving average before proceeding higher or pulling back to the 7000 level.

    Notice that the drops are becoming smaller and smaller. May drop was huge, Feb drop was short/sweet but smaller and then this recent drop was even smaller. The contraction in the price drops indicate only one thing to me and that is price expansion is soon to follow.

    This is the time now to sit around the betting table and wonder which way it will turn. In 2000-2001, if you remember, the index fell 2000-3000 points in short time only to recover it all in just a short time finally resulting in a huge dump in the 2001-2002 period. These are the types of swings that can be expected in a high vix environment.

    Look at my vix chart. The target price on that chart is 23.8 where I believe it will shoot up to in very short order.
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  5. What did I miss? What did you say?! :p

    And yes, I edited your post for my enjoyment because michaelscott is 100X more intelligent than you and I'm not exactly his biggest fan, reality bites huh?
  6. LOL That's hilarious:D
  7. KS96


    rescale the x-axis and you can have any angle you fancy
  8. Surdo


    Do you ever post anything of value, or is your sole purpose to attack anybody that has an opinion?

    Your dogshit is really getting old.


    ***added question mark for "The Troll"
  9. Actually I do and you just seem to miss it. Perhaps your inability to see past your anger is hampering you from actually reading some of the salient topics I try to bring up.

    Why are you following me around and whining about me? Don't you have anything better to do? Did I offend you? :D

    And when you ask a question it's actually necessary that you use a "?" to denote that.