Yesterday, we hit our initial downside target laid out over the weekend [see: So Far, So Good] when we nailed the Fibonacci .886 retracement of the Butterfly pattern (purple) we’ve been following since April 10. We bounced hard there, as the RSI chart indicated we might [see: 3rd Time a Charm] and completed a back … continue reading →
Tag Archives: butterfly
Over the past 5 weeks, our forecasts have been remarkably accurate. The Butterfly pattern identified back on Mar 29 [All the Pretty Butterflies] correctly called the 1422 interim top. As anticipated on Apr 10, we got a bounce at 1357 (the .786 of the 1340-1422 rise) and began tracing out a head & shoulders pattern … continue reading →
Yesterday we explored the alternate path in detail, noting that one of the two RSI trend lines we’ve been watching had broken, and the second was coming into play. There is the possibility that the downward sloping red, dashed TL will catch it on the way up, but the yellow TL just broken was a … continue reading →
UPDATE: 5:35 PM S&P cuts Spain two notches, from A to BBB+, based on contracting economy…cites declining disposable income, private sector deleveraging, front-loaded fiscal consolidation and an uncertain outlook for external demand in many of Spain’s key trading partners. UPDATE: 3:25 PM Here’s a close up of the alternative path, which looks stronger with … continue reading →
The analog we’ve been watching since April 9 is playing out nicely so far. We got the original bounce at 1357 as forecast, followed by a rise to the middle of our 1380-1400 target range. The H&S pattern we expected did, in fact, set up and complete yesterday. Now, we’re back testing the little channel … continue reading →
Where there was once a falling wedge, there is now a channel. The April 10 breakout that looked so promising completed a Bat pattern and promptly reversed nearly 61.8% of the move from the 13.66 bottom. Is this the end of the ride, or are there bigger and better things in store for VIX? I … continue reading →
EOD: 2:25 AM SPX overshot the Crab’s 1.618, whichever Point X we use. The next major lines of harmonic support are are the red pattern’s 2.24 at 1342, correlating with the purple pattern’s 2.618 at 1341. Given the level of oversold on the day, here’s an alternative view. UPDATE: 11:55 AM The Crab Pattern … continue reading →
ORIGINAL POST: We’re finally seeing reactions on the harmonic pattern completions we’ve been watching for what seems like forever [see: Everything’s Coming Up Crabs.]RUT completed a Crab Pattern (in red) within the last leg of a Bat Pattern (purple) off the 2011 highs. It never has cleared the TL off the May and July highs. … continue reading →