Sunday, July 1, 2012


S&P 500

The current time period has an interesting geometric cluster (shown in the 2nd chart below). The technicals look rather bullish--the RSI and other indicators producing a bullish non-confirmation during the later part of the May decline. It appears that the path of least resistance currently is up but it should be noted that rallies within bear campaigns are quite violent and seductive...just look at the market action in the summer of 2008 as an example.

The chart below has several indications of a potential trend change this week--which may correspond to the geometric cluster shown in the second chart.
  • The green arc is at its maximum swing this week
  • The half square forms at the end of this week as well. 

For an interesting analysis of Apple (AAPL) check out this blog: Chart Learning


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