Saturday, November 13, 2010

S&P Top?

The charts below make a case for a top being made at last week's November 8th Energy Date. While it is still possible for the market to rally into the November 22-25th Energy period, technical indicators are suggesting that a decline is imminent.

This chart shows the square of time using the April 26 - July 1 decline.
  • 2 cycles from July 1 is NOVEMBER 10th.
  • 90 days from Aug 9 is November 7th
  • 720 degrees DOWN from 1219.80 (price) intersected the 1010 low with time.(April 26-July 1)
  • Technical studies appear to be breaking down after showing divergence.

The charts below show the S&P using a 3D projection of 4 key pivots:
Upper Chart
  • AB form the upper parallelepiped. (February 5th - July 1st major lows).
  • Prices hugged the lower corner of the structure during the ascent in September and October.
  • Prices have entered the top right corner of the structure with resistance being encountered at the bottom of the back side of the parallelepiped.
  • An advance into the November 22-25 time frame would put prices at the upper right side of the structure--the extreme point.
  • Prices have followed the 60 degree vector off the August 27th low of 1039.70.
Lower Chart
  • The lower parallelepiped was formed from the June 21st high and the Aug 27th Low.
  • The structure terminated with price approaching the extreme upper right corner--Exact time--price 3 pts. off.
  • Prices hugged the 50% height of the side of the parallelepiped through September and October and spiked to the upper corner in November before reversing.
  • Fridays close was at the 50% height level of the 'side' of the structure.

2 comments:

ricardo said...

Dear Mussuigglylines,

It found this blog is really interesting.
I wish you lucky in trading and thanks for your posting

Fibocycle said...

Thank you and good luck to you as well.