Sunday, December 5, 2010

Transports

There are some interesting things about the chart of the Transports below:
When the Range from the May 19, 2008 -Mar 9 2009 is 'squared' harmonic angles become active.
  • using the range amplitude (ht.) as the hypotenuse of a equilateral triangle, the height of the perpendicular is .866 = sin(60) The translates into a value of 5080.65 for the Dow Transports.
  • Note the significance of the various 30, 45 and 60 degree rays coming from the low, high and 'squares'.
  • The second cycle is coming to an end and current prices are at a harmonic level.
A high in this vicinity (5000-5100 2%) followed by a reversal pattern would be an early warning of further deterioration in the broader markets.

The following levels should act as support and resistance. Breaking the lower support level would raise the probabilities that a significant top has been completed

  • R2: 5243
  • R1: 5156
  • Pivot: 4988.74
  • S1: 4901.31
  • S2: 4733.80


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