I see Dead People

Actually I don't see Dead People but I see lots and lots of diagnols forming at support. ($SPX, $INDU, XLF, IWM) My favorite set up ...an ending diagnol at support. If you are ever going to try to pick a bottom this would be the pattern to do it with. I've seen these break down too but the great thing is they provide a great risk reward. Because the stop is easy ....below support $SPX 1320 and target is top of diagnol 1346. I was looking for 1307-1311 on pull back but may not get it.

Don't you love this board. Beta and Insider posts bearish charts and minutes later the new guy comes along and think he knows better...

http://stockcharts.com/c-sc/sc?s=$SPX&p=5&yr=0&mn=0&dy=5&i=p62731715560&a=134027809&r=928.png

Timing of the low says we'll see it tested after 1:15 PM.

Timing of the low says we'll see it tested after 1:15 PM.

The pattern actually is not complete yet. Still needs one more low so that works....

Thanks Semi....I have all kinds of volume only charts drawn now in my folders. It is something I watch now for test of the highs and lows of high volume bars. Thats about as far as I have gotten with it for now but I am sure will learn more later.

SL

Hey New Guy,

Your chart interpretation is certainly valid. Here's another take on the 5-min SPX. I see a 5-wave down in motion, where we are currently in wave 3. If this pattern is valid, wave 4 should not exceed 1341, and wave 5 could terminate around SPX 1295.

http://stockcharts.com/c-sc/sc?s=$SPX&p=5&yr=0&mn=0&dy=5&i=p99931622580&a=113533385&r=2472.png

Edited by beta, 28 March 2008 - 12:21 PM.

Beta, If this diagnol breaks down I will definitely be on board with you. I am concened the third wave is not steep enough and there is too much overlap. It would definitely need to accelerate shortly which if the diagnol breaks down it should. Now remember in my experience these diagnols do tend to overshoot on the third touch of that bottom trendline with a pop in volume but they shoud recover fairly quickly. It looks like $INDU and $SPX are rolling over now for that third touch....The agressive way to play this is to buy the third touch of the lower trendline of the diagnol. This is actually tricky as you could draw that lower trendline a couple different ways. The less agressive way is to wait for upper trendline to be broken and the last pivot to be taken out (1332 on $SPX and about 12350 on $INDU). Should know before end of day.. SL

Actually I don't see Dead People but I see lots and lots of diagnols forming at support. ($SPX, $INDU, XLF, IWM) My favorite set up ...an ending diagnol at support. If you are ever going to try to pick a bottom this would be the pattern to do it with. I've seen these break down too but the great thing is they provide a great risk reward. Because the stop is easy ....below support $SPX 1320 and target is top of diagnol 1346. I was looking for 1307-1311 on pull back but may not get it.

Don't you love this board. Beta and Insider posts bearish charts and minutes later the new guy comes along and think he knows better...

http://stockcharts.com/c-sc/sc?s=$SPX&p=5&yr=0&mn=0&dy=5&i=p62731715560&a=134027809&r=928.png

Watching that myself, East coast tides begin falling after 14:00, looking for a quick rally to short into the close...

Hey! All you new guys... great work/discussion. It's a tough call but, one thing is for sure, if this is EOQ window dressing...

Edited by milbank, 28 March 2008 - 12:52 PM.

The channel in the futures (ES) chart looks closer to beta's even though the cash might seem to be putting a different pattern there...

...Watching that myself, East coast tides begin falling after 14:00, looking for a quick rally to short into the close...

Yes, think a bounce to SPX 1334-ish may be in the works for later today. Bot SSO @ 66.34 to hedge QID (will close latter 1-2% higher).

Edited by beta, 28 March 2008 - 01:12 PM.

The diagnols appear to be breaking down not up. They need an immediate reversal if there valid... SL