Look at these odd wedges forming on these different indexes...I don't remember ever seeing such divergent patterns before across the different indexes....I'm not sure what to make of it....The bottom one, has of course, been 'transformed' a bit by my math programs, but it still looks basically the same as it's 'normal time' cousin, above it...
2 comments:
thanks again, Mark
Your charts, using SPX as proxy, AND considering today's even more bizarro action than recent days....
Scenario A:
1. May have to move my upside target to 1110
2. referring to the MONTHLY recent "hard" stoch bear cross. Usually, a hard, sharp, sudden cross like this one is followed by a STRONG bounce, no matter the time frame of a chart. Compare to the earlier bear cross on your chart which was much "softer." We've still got a ways to go this month, so maybe it will "soften" up and give me the 1110?
Scenario B:
1. This hard cross is just getting started!! If that's the case, there's so many swans in the air, I haven't noticed the new one yet.
2. This would mean I've missed the optimum opportunity to short some individual equities that are more bloated than the SPX for the terminal ride down.
Hi Anonymous,
Yes, I'm seeing possibilities like this also..Bigcharts uses a different set of time parameters then most sites for Stochastics, (5,5) versus conventional (14,3) used on StockCharts and others. That said, it's true you often see hard bounces with these crossovers. There's also an effect of the indexes flipping up and down through their Bollinger bands, echoes of the 'Flash Crash', which may not be over, and may be trying to produce a bounce here, sort of spring -like harmonic. This, in turn, gets me thinking that if we bounce here for real, we will have had 5 waves from the top, which implies it may climb up to one of the higher and less steep trendline for a visit, as part of an Elliott style Bear market rally of higher degree. It just shows me how much yet I haven't got a handle on...
Regards,
Mark
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