Overall structure from June is still bullish !
#1
Posted 10 January 2007 - 12:58 AM
#2
Posted 10 January 2007 - 02:20 AM
#3
Posted 10 January 2007 - 08:11 AM
The million dollar question is "Is E finished?".......There is a slight overlap with top of wave 1 with the C wave marked on the falling wedge but would look better with one more low. If a lower low is to come I have three possible targets...the lower parallel support line shown here at 653.89, the lower BB on the daily is at 652.53 and the daily 50 sma is at 651.68. If we break out the top of the wedge at any time before reaching any of those targets....I don't think it's a fake out. I'm especially watching the MACD, RSI and Full Sto 21,3,3 on the daily. Of course if the wedge bottom doesn't hold...fergitaboudit.
Edited by Teaparty, 10 January 2007 - 08:14 AM.
#4
Posted 10 January 2007 - 08:33 AM
#5
Posted 10 January 2007 - 08:40 AM
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A look at the weekly spx. You know how fond I am of any 8ema...spx has found support there since the summer low. We seem to be pinched between there and the old neckline that kicked off the correction started in 2000....and I'm convinced it still means something in terms of a bull/bear line.....a weekly close above there would probably mean a close on OEX above the .618 mark at 670 ...both bullish implications. HOWEVER...the weekly does look like it's trying to roll......macd cross, RSI has moved below the 70 plane and the 34CCI has broken the 100 plane. What has to be taken out on a weekly closing basis is first the 8ema and then the top of the channel/wedge at approx 1394. A weekly close below 1394 area should get us 1350 fairly quickly...... a full test of last years may high could be in the cards.
http://stockcharts.com/c-sc/sc?s=$SPX&p=W&st=1999-01-01&i=p14175576400&a=57601821&r=6875.png
#6
Posted 10 January 2007 - 08:54 AM
Edited by Teaparty, 10 January 2007 - 08:55 AM.
#7
Posted 10 January 2007 - 09:06 AM
#8
Posted 10 January 2007 - 09:20 AM
#9
Posted 10 January 2007 - 10:23 AM
Nav, posted this yesterday on another board and ties in with that 1390 target....although I have the top of the wedge/channel at 1394 but 1390 could get hit as long as we close the week above the top of the wedge/channel a move to test the highs or new highs into OPEX Friday or beyond. Today being WWW of course.
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A look at the weekly spx. You know how fond I am of any 8ema...spx has found support there since the summer low. We seem to be pinched between there and the old neckline that kicked off the correction started in 2000....and I'm convinced it still means something in terms of a bull/bear line.....a weekly close above there would probably mean a close on OEX above the .618 mark at 670 ...both bullish implications. HOWEVER...the weekly does look like it's trying to roll......macd cross, RSI has moved below the 70 plane and the 34CCI has broken the 100 plane. What has to be taken out on a weekly closing basis is first the 8ema and then the top of the channel/wedge at approx 1394. A weekly close below 1394 area should get us 1350 fairly quickly...... a full test of last years may high could be in the cards.
http://stockcharts.com/c-sc/sc?s=$SPX&p=W&st=1999-01-01&i=p14175576400&a=57601821&r=6875.png
eminimee,
I think the test of May 05 highs will come from higher levels. System is thick with shorts. They will get cleaned before any significant correction.