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


USDX

  • 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!!!!

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