Look at the annotations on the upper chart first...Click on each one to enlarge...
Just for info, '3>1' refers to trendlines generated from the rally top on 1/19/10 and '5>1' refers to the 4/26/10 rally top, both large scale events from the 2009-2010 rally. They are from Elliott notation, counting waves...you know, wave 3, wave 5....
I'm not sure why it happened, but the slight, residual positive bias in the market after the rally channel stalled mid-week seems related to that violet 3>1 trendline in the lower chart. First it was a nominal resistance, that didn't do much, and lately, it has become support, and the highs of recent days have paralleled it in a sloppy fashion....
The next act in the show, is the big trendline coming down from above, which is now almost in contact with the price action...
1 comment:
Hi Mark,
Great Work!
Thank-you
Cheers,
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