BP's for SPX
slight negative divergence in my judgment vs. BP's usual level when SPX $1313 level is printing for daily closes
I am not certain of the importance of this divergence, and it can be quickly solved by a continuation higher ....
I believe it deserves some level of respect as a WARNING
BP's for the SPX needs to continue to higher levels...a slow grind is fine, it is not desirable for the BP's to later decline and
actually hold below the 65 to 67 level ... I can't personally find it plausible the price action in the future is likely
to hold any pullbacks below SPX $1251 level unless the SPX BP's decline and hold below 70 to 65 level
SPX price action
$1313 is derived from the weekly closes chart
+ $1313 must eventually be a price level above which we eventually start basing higher to support a further advance
SPX price trading range was $1120 to $1220 / then $1220 to $1265 for a period of time / once $1251 was placed quickly
behind in the advance since December, the new basing price level is now $1251 to $1313, imo...we have actually put this $1220 to
$1265 trading range zone behind us with a further advance achieving a respectable distance above both $1265 and $1295 -
THIS IS A CHART FACT which must be respected as a high priority ....
the significance is so high that much respect must be accepted by
those of us who are trading price and chart breakouts as our major indicator
I count 44 chart breakouts in 29 major index and sector ETF's in the two days since the count was 7 on Tuesday's close ...this
means the actual chart configurations for the price action since January 2011 are improving with actual new high prints above
key chart levels ... this deserves an incredible amount of respect, especially if this large number of what I consider major
chart breakouts actually holds for a period of time
NYHGH
the negative divergence by the # of NYSE new 52wk highs vs. when SPX is trading at $1313 or above must be respected
a technician really wants to see this number increase eventually, and the sooner the better...of all the bull trap WARNINGS that
can be considered in viewing many internals, this one data point has my highest respect as a WARNING to be vigilant
SUMMARY
my judgment is that this price action since the November V-bottom and since late December higher SPX price low has accomplished
a number of major character changes in the actual charts of price action for indices and the component sectors ...a trader must
respect the price action in spite of the divergence and concerns which can be identified
price action and chart configurations which are achieving major and highly significant breakouts for the 18-month chart period MUST
be respected ...sure, be vigilant here, but respect price action..the NYSE commons only chart info. could improve a lot to help
the overall cause here, and the Russell 2000 could definitely confirm by establishing a long-lasting and FIRM base above the $770 to 777 level by a much
larger distance in the next few weeks ... I will certainly consider this price advance a LOCK to sustain for a few months if these and the
chart breakouts are events which actually hold for a period of time
I would not be trading indicators here ... I recommend trading the price action
- hiker
Edited by hiker, 20 January 2012 - 08:36 AM.
