Current setup

I had marked up the H&S last week, and the downward consolidation early friday, we are now testing the all important
850 area. Any move below 845 then I believe we go to 820 or lower, and also as I said will confirm the IT top is in.
On the other side, a strong move up off here, and bulls have a chance to run us to 920-940 before the IT price top.
I remain of the view the IT top is in, and we break down.

http://stockcharts.c...t?obj=ID2453932

http://stockcharts.com/c-sc/sc?s=$SPX&p=15&yr=0&mn=0&dy=13&i=p98649882580&a=156874023&r=947.png

Edited by entropy, 29 December 2008 - 01:27 PM.

My F.F. is the launch to your 920-940 area begins tomorrow. We have a cresting of cycles hitting tomorrow and one additional cycle on Friday. I have placed a big long bet on a rally starting tomorrow and ending after Jan 2nd.

entropy, I don't think you can really call this a head and shoulders, respectfully of course. It vaguely looks like one but it's smack dab in the middle of the larger chart pattern. (1 chart)

U.F.O.

entropy, I don't think you can really call this a head and shoulders, respectfully of course. It vaguely looks like one but it's smack dab in the middle of the larger chart pattern. (1 chart)

U.F.O.

Understood U.F.O, its not an Edwards&Magee H&S, its just a trading price pattern i've called H&S for its shape, that plays out that way better than random.

best,
Mark.

Edited by entropy, 29 December 2008 - 10:17 PM.