We have hit the first seed wave of 4th scale on my model : as I said it is not sustainable on short term and in fact wave 1 is the limit of consolidation (not accounting for intraday volatility) so as theory said there will be sellers at top of wave 1. Nevertheless you play with 4th scale that is to say the noise can be great. I prefer to play it on intraday basis because buying at the break zone of 9087 on intraday basis was great but holding it was not . There are putters since 8781 on some automatic daily system and they still hang on with a stop above 9300 .
One day does not a market make. My charts are showing the momentum, short term, and intermediate lines all at the top end of the upper reversal zone as of Friday a. m. This is a short term chart. Reversal could last for a day or two, maybe three. I use it for short term option trades on the 3-Q's. So far, it's been very accurate, however the psychology is changing....Well know in a few days if it is correct.
You be the judge Part II Look at this up channel. It is defined by the zero degree diagonal (bottom of channel) and the 90 degree diagonal target line (top of the channel).
Sarasota, Please do take me as a jerk when I say this : What the hell are all of those lines. Gann or something.
Sarasota, There are two charts available to CNBCU.com subscribers. One is Dow Jones and the other NASDAQ. I understand that these charts are trademarked by the owner developer of the software. They chart long term, short term and intermmediete term, along with a momentum line. They look similar to stochastic charts, but with four lines, having overbought and oversold areas at the top and bottom. As of Friday mornings charts are what I referenced earlier.