In Harry Potter, these are the three magical objects which make their owner a master of death. Tonight, we’ll look at three technical indicators that, while they may not grant immortality, will hopefully guide us safely through a dangerous market. (1) Our harmonics patterns are working out exactly as expected. As we forecast in Patterns, … continue reading →
Category Archives: Charts I’m Watching
ORIGINAL POST: 8:35AM PDT Watching the bearish Bat Pattern unfold, with Fib targets based on the DA measurement: .618 — 1295 1.272 — 1231 1.618 — 1197 Bearish Bat Pattern And, for those who have been following my 2011 = 2007 posts, today is putting in a bid as a candidate … continue reading →
While backtesting the trend line from the Mar ’09 lows, the market did a little throw-over last week — exceeding the resistance by 14 points on Thursday, but giving it all back on Friday. As we discussed in Confidence Fairies and Snowballs, this throw-over was a function of the government’s attempt to intervene in the … continue reading →
For anyone who’s wondering what ever happened to the 87-day cycle, it’s back. Recall that we found that many of the significant downturns since 2007 fell within 15 days of an 87 calendar day cycle [see: Sure, it Works in Practice from May 10.] Here’s the chart and graph from that post: The average drop … continue reading →
Anyone considering jumping on the bullish bandwagon should look carefully at the charts below. I’ve drawn in 2-standard deviation regression channels. You might notice that the only key difference between the 2007 and the 2011 charts is that in 2007, the final push rises to the midline, or zero channel. At today’s top, and I … continue reading →
In a Q&A; session with Reuters this morning Mohamed El-Erian remarked that: The confidence fairy has to counter the reality of an economy that still has to de-lever, structural headwinds, concerns about Europe, etc… The current approach of kicking the can down the road (I prefer rolling a snowball down a hill as it captures … continue reading →
According to the Washington Post, Obama has thrown the sick and the elderly under the balance-the-frickin-budget bus. At least, that’s how some will paint it. Others will assert that Boehner has abandoned his peeps (the rich) in order to reach an unacceptable compromise. As always, reality is somewhere in the middle (and it’s far from … continue reading →
Today’s action was a mix of misdirection that would make Hitchcock proud. We were down 10 points early, locked in a channel aimed squarely at 1300. But, we quickly rebounded and the channel morphed into a descending broadening pattern. Then, that pattern started tracing out a little inverse head and shoulders pattern that promised a … continue reading →
ORIGINAL ENTRY: A nice entry point here at the top of the channel that’s carving out on the 5 minute chart. At 1339 now, I believe we’ll close below 1330. UPDATE: 10:35 AM PDT With the move up to 1340, the channel morphed into a descending broadening formation, which can break out in either direction. … continue reading →
Back on June 27th, with SPX at1279, I suggested an upside target of 1322 [Patterns, Patterns and More Patterns.] At that price, I noted, we would have completed a bearish Crab Pattern at the 3.14 extension of the BC leg. At the recent high of 1341, we’ve completed a nearly perfectly formed Crab Pattern at … continue reading →