Tuesday, April 8, 2008

It looks like the $SPX trendlines determined the top here...

Notice on the charts in the post below, the $spx trendlines seemed the most instrumental in turning the markets, on this just past, Bradley date. This makes sense as that's where the broken banking sector resides...Although I do see one $ndx chart that shows a pretty good, classic trendline failure...(the "upper left" one)

It's worth noting also that the bottom clusters of three charts on the $spx and $ndx did a better job of calling bottoms so far, and the top clusters of three charts for each index has done much better showing tops. The overall impression I get from examining these is that we may be a bit range bound for a while, and the next bottoms may be in the general vicinity of the ones we've seen already over the last couple of months.

That's just an impression, don't take it as Gospel, but it makes sense, particularly if you look at the bottom sequence of $spx charts...the lower trendlines are acting like hard surfaces, restricting the range of the bottoms....

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