Saturday, April 25, 2009
SPX Daily Indicator Chart - Looking for Double Top
This is the second chart in my chartbook, $$ 1- SPX Daily Indicator Chart, better viewed there.
Looking at trends RSI may need to peak again, Full STO likes to peak a couple of weeks before the top (in this case it is embedded), the last time MACD and PPO knotted up at the top it lasted a couple of weeks, TRIX is about to cross, Volume is still too high IMO and SPXA50 is staying overbought. All this combined with SPX completing a 61.8% retrace off the 1007 top at 875 and the rising diagonal/wedge having ended (or possibly forming a new larger diagonal - Blue lines) is telling me the top is near. Maybe it's looking for the double top.
On the way down you can see the SPX is being supported by the 100ma. This has to crack before we can get anywhere. The retracements are plain to see. 818 to 810 is going to be a formidable support range. The gaps at 852, 826 and 768 are other important areas.
After looking at all the various rising wedges on the likes of AAPL, AMZN and others (see posts below) and the falling wedges on the bear ETFs, it is hard to believe that we have not topped or will be double topping and headed down soon. It may be a bumpy road down filled with a lot of support areas and dma's that need to be taken out (not to mention fighting the Fed, PPT and other market manipulators. For the longetst time I mentioned that it would take some sort of "external" factor to make this puppy drop and the way things are going that still might hold true.
Enjoy the weekend.
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thanks shanky... I'm unable to make the chart bigger for some reason... I don't know if that's an html thang....
ReplyDeletehave a great weekend..... shorts win Monday, and part Tuesday fo sho... then window dressing and you know what May Day brings.... lol.... tankini time....
If the Paulson, Bernanke, and Lewis scam grows some legs, and quick, this certainly could be the catalyst the markets need in order to be reconnected with reality and while they're at it, investigate Geithner too as he's clearly one of Paulson's stooges.
ReplyDeleteLYNN TURNER: If these allegations are proven true, both Bernanke and Paulson should be prosecuted by the SEC to the fullest extent of the law.
http://marketplace.publicradio.org/display/web/2009/04/23/pm_transparency/