3 replies to this topic

[Tor]

Until the highs are taken out of that day, no bullish confirmation. i posted a bullish post below, and it does look that way, but the real confirmation comes in at that point. so, i am cautiously bullish and look to add above 8th. otherwise i look for a stop loss. good trading.

[phineas_gage]

agreed.

I posted last night about the odd symmetry with the left and right shoulders of this formation. IMHO, it sets up SPX ~1500 as THE level. Quoting myself:

"It may be worth pointing out the parallel with August 3rd and 6th. We had a 3.38 trin on a 1433 SPX close followed the next trading day by a .45 trin on a 1467 SPX close. Yesterday we closed at 1432.36 and today's close was 1463. It's even more astonishing considering these two periods make up the shoulders of a putative inverse head and shoulders. In the days following the 6th we traded higher on full white candles for two days topping at 1497.49 which also happened to be the 200 day SMA at the time. Guess where it will be this Friday? Yep, close enough.

This kind of symmetry is pretty rare. Although many are on board for the inverse head and shoulders, my short term oscillators would be overbought at that level. Alot of shorts (me included) covered yesterday and today so the fuel for a measured move from a 1500 neckline seems sparse.

I'm willing to buy the next two days for day chops. But 1500 looks like brick wall to me. I'm not making a stand, or arguing with anybody's vision, but I'll be setting up shorts around helicopter Ben, with stops set to equate to about 1510-1515 SPX. Thats about the neutral point for me as far as trend- i.e.: higher and I'm bullish and lower I'm bearish, but the potential downside from a failure there, just as the 8/3-8/6 parallel shows, is significant. More significant than the upside from where I sit."

[blustar]

I totally agree!!!

[phineas_gage]

Jeff Cooper reflecting on this theme at Minyanville: http://www.minyanvil...dex.php?a=13930