1 reply to this topic

[spielchekr]

If closing prices break below any of those red-highlighted ones shown on the upper chart, the BB's will begin to flange as demonstrated for this coming Friday on the lower chart. In other words, the effect of rolling the 20ma over at this point could threaten to cut a bit deeper than one might be expecting. Now notice Rate Cut Day and the ensuing consolidation in September, and one might appreciate how such a test, if permitted, would have a meaningful outcome. So, are they confident enough to let it be proven yet, if ever?



The dashed red line on the following live chart indicates the 20ma rollover thresholds for each of the coming days ahead.

http://stockcharts.com/c-sc/sc?s=$SPX&p=D&yr=0&mn=4&dy=15&i=p43146680345&a=119594006&r=5702.png

[Russ]

Interesting charts. You said 'if they permit it' (a test of the rate cut rally) , interesting view but do 'they' really have control over whether a test ocurrs or not? The charts below suggests at least a short term relief rally is coming on Tues.

http://bigcharts.mar...&mocktick=1.png

http://bigcharts.mar...&mocktick=1.png

Edited by Russ, 15 October 2007 - 10:36 PM.