Commented that breadth is signaling IT bottom. We have a strong bounce at the major supports during the last two days. Market will react to Eco numbers tomorrow.
Noted that market condition is set up for breaking above SPX 1550:
1) high VIX
2) high short level and pessimism
3) breadth extreme level
4) climactic volumes
However, we do not have favorable seasonality. Seasonality is average pattern so we do have exceptions like we have seen during the last year, i.e. Jun-Jul 2006 bottom.
My anticipation was 9mo cycle top on 7/19 and 3mo consolidation into Sept/Oct low to make 9mo cycle low; however, because of the recent sell-momentum and climactic conditions which I noted, market could resume the recent uptrend. Furthermore, while a-b-c correction is a textbook case, a breakout above SPX 1550 is not out-of-question.
In fact, the current market condition is quite similar as we have seen during the previous major bottoms even though price has not retraced as majority of market participants expect. The short level and pessimism could be, again, the fuel which market needed to breakout above SPX 1550.
Good trades
~~~
Posted by: __1Best__
In reply to: None
Date:8/2/2007 2:47:37 PM
Post #of 1883
Let's Rocket above Qs 48.30 R and SPX 1475 R !!!!!
~~~
http://investorshub....age_id=21766259
Posted by: __1Best__
In reply to: None
Date:8/2/2007 12:44:56 PM
Post #of 1883
VIX shows IT Bottom Signal: As commented before, high volatility is often a contrarian indicator as we have seen during prior major bottoms. VIX is now showing the same level as the one we have seen 1994 and 2006 major bottoms.
http://stockcharts.com/c-sc/sc?s=$VIX&p=D&st=1990-01-01&i=p25033596000&a=78540888&r=132.png
~~~
Intra Buy Signal
http://investorshub....age_id=21739215
Posted by: __1Best__
In reply to: rainbow12345 who wrote msg# 1845
Date:8/1/2007 3:19:50 PM
Post #of 1883
Rocket up to close! BUY/SHORT COVER!
~~~
http://www.traders-t...mp;#entry302822
Posted on: Jul 28 2007, 10:17 PM
Breadth - MAJOR BOTTOMS - 2007 Bull Market, $SSEC big sell-off pattern?
Breadth is showing "Major Bottom".
http://www.traders-t...showtopic=73479
We could see $SSEC pattern after the big sell-off.
Market is screaming redbull.gif or bear.gif
So far, it is redbull.gif redbull.gif redbull.gif until proven otherwise.
http://www.stockchar...09398&r=568.png
http://www.stockchar...77535&r=859.png
http://www.stockchar...40300&r=617.png
http://www.stockcharts.com/c-sc/sc?s=$SPX&p=60&yr=0&mn=2&dy=15&i=p73797548221&a=79285156&r=517.png
http://www.stockcharts.com/c-sc/sc?s=$SPX&p=D&yr=0&mn=9&dy=0&i=p22232131775&a=76929034&r=724.png
http://www.stockcharts.com/c-sc/sc?s=$SPX&p=W&yr=4&mn=8&dy=0&i=p49229126946&a=78987374&r=825.png
http://www.stockcharts.com/c-sc/sc?s=$INDU&p=D&yr=0&mn=10&dy=0&i=p31631774778&a=76966992&r=329.png
http://www.stockcharts.com/c-sc/sc?s=$INDU&p=W&yr=4&mn=7&dy=0&i=p06542340040&a=76929550&r=152.png
http://www.stockcharts.com/c-sc/sc?s=$COMPQ&p=D&yr=0&mn=8&dy=0&i=p21609042622&a=76909044&r=764.png
http://www.stockcharts.com/c-sc/sc?s=$COMPQ&p=W&yr=4&mn=6&dy=0&i=p22094758617&a=77295648&r=443.png
Edited by Trend-Signals, 02 August 2007 - 09:49 PM.
