$SPX Gann/Trendlines

I've been playing around with long term charts lately. These focus of the 1982 low and 2000 high. Note the 1:2 Gann line for the 1982 - 2007 Bull has held up until this past week. That's an issue for this bear market. This Gann fan saved the greatest bull market in history many a time in the 80's. We also bounced off the linear 1982 - 2007 bull trendline at about $SPX 700 today. Lots of action in the next 100 points down and much at stake here. And of course we are in the 81st week off the Aug. 2007 low (last 80 week Hurst low). Between the current bear trendline and today's close, there are several potential bounce/buy points. cheers, john

Hi John, This is the update of the chart we discussed on the weekend, and might compliment your chart. The outer price series is anchored to a significant (high + low) set with the best fit I could find on the existing data. The inner series is anchored to the outer 618, and again uses a 'best fit' on the remaining data points, which happens to anchor the inner 100 line to the 138.2 on the outer series. The candle which anchors the inner series is not really a top, but it is the top of the pair of indecisive green candles in that leg, and it does fit the data better than the alternatives,particularly where we broke the lower bound of the price channel. It might provide a bit of a guide to potential pivot points in the vicinity. The lines off the page are easy to calculate, if it proves accurate in the next few days. The future dates are dummied in to provide some scale. best ...

hey Brendan, Well we broke the trendline. Let the games begin. I don't think such a big trendline break is going to be taken lightly. Target under 650 is now more likely. cheers, john