Friday, December 10, 2010

Transports & U.S. Dollar

Transports:
The behavior of the transports at this harmonic price level will offer a clue as to the direction of the general market in the short term. If the Transports break above 5080 significantly, further rally in the equities can be expected. If 5080 becomes strong resistance a topping process may be in the making.


All seems well with the US $.

  • Diagonal resistance points from the June 7, 2010 high were at the 15 and 30 degree vectors (August high @ 30* and the recent November high @ 15*)
  • 45* vector off the November low has acted as diagonal support at the Dec 3rd low. Dec 3rd--a Friday--was 119 days from the August 6th high.
  • Note the resistance at the recent high is at the extension of the diagonal of the base rectangle formed from the Aug 6th low and the November 4th low. 90 Days
  • Resistance encountered at the 200 day SMA.
  • Energy Date Dec 18-23 should resolve the current price congestion. December 19th is 135 (90+45) days from the August 6th high.

Harmonic Price Levels are:
Geometric PRICE
Degrees 75.63
30 78.56
45 80.04
60 81.54
72 82.75
90 84.58
120 87.67
135 89.24
144 90.18
150 90.82
180 94.02


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