Thursday, May 21, 2009

SPX Channel Close today

I don't know how but it works. Look at the last 4 hous bouncing around between the 50 and 75% lines. Added the red trend line which is the lower trend line from the whole move up playing out thru this formation. Blue box is 50 to 61.8% retracement zone. Indicators here on the 30m and on the 60m say we go up from here. Looks to me like SPX could possibly be setting up a descending triangle. I don't like that call, but it is what I can make of it right now. Johnny, what can you make of this....

From this morning:

OK, so the top got violated without any lubricant, but that is alright. Why are all these trend lines still valid? SPX gapped thru the top line, gapped thru the 25% line and tried to put on the breaks at the 50% line. I'm gonna still keep an eye on each line as they have proven pretty reliable for this whole move down. They may not mark the "end all" pattern, but the lines are proving somewhat reliable IMO. Let's see what happens with the bottom!

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