I can understand incredulity of the "building cause" concept

Here's a review of my thought process:

Monday I posted in Uh oh . . .:

SPX didn't test 741.02 yet. Stopping right before a swing point with accelerating volume is the definition of "building cause" to blow that swing away. And when I say "blow away" I mean with Quality of Volume.

I should have added, it's even more dangerous if something stops right before a swing point and starts going sideways. This generates energy/force/volume to bust out the swing.

On Tuesday I posted in I know price is King, and it's good to be with the King:

First a look at daily SPX:

Wednesday & Thursday continued that high volume trend. Today was about pushing higher and rejecting those higher prices on lighter volume. But this is still the back and forth building cause process.

On Wednesday I posted in I'm placing stops on all my ultrashorts:

My T.A. says SPX could easily break 741.02 with Quality of Volume on a weekly this week, but I also see how this could wait until March.

And here's an update on the weekly SPX:



Let me expand on that last point with the DOW:



But I laid out what would make me bullish Tuesday:

Let me state what a successful test of the November '08 low on a weekly basis would look like: SPX price trades at 741.02, rejects the price, closes on a weekly basis above 741.02, and does all that on lighter volume (I'd like volume on the order of ~10% lighter to be sure).

In that case, odds favor a bullish spring.

I wanted to emphasize in this thread how dangerous building cause can be. Because I posted the following Wednesday in Here's that A - B = C - D pattern:

Here's a possible A - B = C - D pattern setup on the SPX.

Pay attention to volume this week!

Who knows? SPX may not even test the Nov. low tomorrow. But if it does. . .

Thanks Uno. I really get into stuff like this.

Great post! Thanks for taking the time to post your work.

Great work. Keep it coming. We all appreciate it. mm