Notice that in the $SPX, the rally only came up to the intersection of:
(1) the line representing the general level of previous near term tops and...
(2) is touching (and retesting) the lower trendline of the wedge we recently broke down from.
(3) and remember we are at the upper (downward sloping) trendline of long term wedges (see previous posts, this is not shown on this particular chart...)
Given that the exponential work is also saying we are at trendline resistance of that kind (see the post below), and short term sentiment indicators are at extreme (euphoric) levels again, and volume wasn't too impressive... Well, draw your own conclusions...
2 comments:
Excellent analysis. The DJIA also completed an ending diagonal or "bearish wedge." On Friday it also completed an inportant wave relationship where (c) is equal to (a) at 12865. It didn't have to stop there, it only had to acieve the relationship...by the way, all the other domestic and foreign indexes have already done so.
Hi Tonyc,
Thanks for the feedback...I noticed that too, on the $NDX, pretty close to A=C their also, as well as, on the $NDX, we have also retraced half of the move from December '07 to March '08...Lots of resistance here, plus exhaustion of the A_B_C moves...
Regards,
Mark L.
Post a Comment