Monday, January 31, 2011

S&P Top: Squaring of the April-July 2010 Range.

S&P 500
  • The S&P is very close to breaking the swing low of 1271.26 on January 20th.
  • Lower tine of the Andrew's Pitchfork was been violated
  • Several cycles converged the week of January 24-28 (see chart below)
  • Classic RSI divergence
Square of Range
April 26 high: 1219.80
July 1 low: 1010.91

Range 208.89pts

July 1 2011 + 208.89 days = January 25th

February Cycles
February seems relatively unremarkable but the following dates should be noted:

Feb 4-7
Feb 12-14
Feb 19-21
Feb 27-28


  • The decline below the swing low has not accelerated and has returned back in to the congestion area.
  • A continued rally that pushes prices higher than last week's highs would suggest that the bullish case has regained some influence in the market.
Gold--which could be making a short term low (could be VERY short term) and the USDX will be volatile with the instability in the Middle East. The behavior of these markets will be interesting!!!!

No comments: