Thursday, July 12, 2012

Critical Time-Price Juncture

S&P 500
The 'square' shown below is based upon the April 2 - June 4 decline A-B
  • BC is the 90* line from AB. Note how support was found at 1 and support is being tenaciously tested at point 2. If the uptrend continues the 3rd test of the BC will prove to be quite important.
  • The high of July 3rd at point 'd' occurred where the arc AB reached its maximum horizontal AB = Ad
  • Point 2 is located at 1/2 BC. Point high at 'e' is located at the 1/2AB. Will '2' produce a minor pivot like 'e'?
  • If the S&P holds above the BC support line, Point C becomes a viable target both in terms of time and price. This would correspond to a high in the first 2 weeks of August around 1400.
  • The June 25th low at 1309.27 should hold on a closing basis of the integrity of the June 4th low and consequent rally is to remain significant.
  • The market has tended to make pivots in the first week of the month: April 2, May 1, June 4 & July 3. If this cyclical patterns continues, July 30-to August 4th should be interesting.
The next several days will be interesting to watch unfold.
  • Friday the 13th: Uranus SR.
  • Saturday the 14th Mercury SR
  • Tuesday the 17th: Mars trine Jupiter and Mars square Pluto (CURRENCIES USDX)
  • Wednesday the 18th New Moon in Cancer.

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