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Monday, July 12, 2010

Monday updates

In another blow to the bears, the Summation Index is now in a clear bullish trend, triggering one more buy signal on the Trend Finder, now 7 out of 8 sigals are a buy, 75% bullish!!!
After the close, This is starting to get ridiculous with all these over-lapping corrective waves. The price action is waning, as is volume, but the bulls or bears just can not get it going, it is like a jump ball froze in mid-air just waiting for someone to take the ball and run. The SPX did make a new high today so the trend remains up, but there is resistance from the consolidation back in the last week of June that the SPX is hitting in the 1067-1083 range and is having a very tough time of breaking thru to make that higher high.
Breadth for the day closed at 1.76:1, decliners, slow day!!!!
As far as the counts go, odds are just as good by throwing a dart right now, because of the high number of ways this rally can be counted out, with no one count standing out.
The trend finder also stayed the same today, at 50% bullish. I wish there was more to add but not much has really changed in the last couple of trading sessions, if there are any new developments once the daily charts are finalized I will post them ASAP.
9:03, The Bollinger bands are getting tight, and that normally precedes a large move.

8:29, I played around with the forks for a couple of months early last year, but never found them to be accurate enough to place much confidence in, but this one looks interesting at this point.

Click here for a live, and updated chart!!!
7:51, The SPX is still firmly with-in the most bullish part of the Fib fan.

Click here for a live, and updated chart!!!

7:40, Not very much excitement so far this morning, the SPX did make a new high this morning, but is still stuck with printing out over-lapping waves in a continuation of Friday's action. The most interesting thing on the above chart is how the trendlines on the lower indicators are playing out, there is negative divergence on the RSI, and the 5, 35 Histogram is in a large triangle that is now very near the apex, watch for a break-out soon, as there is just not much room left to move inside that contracting triangle.


  1. The bollinger bands are tightening and momentum indicators are starting to diverge downward as prices slowly rise. If the market can rollover from near current levels (1079 S&P) then it would make a good corrective looking rise for a wave ii and a nice wave 3 at several degrees of trend downward to come.

    But a few subdivision higher could easily make it an impulse pattern from the lows which would make 1131 extremely vulnerable, and therefore the highs on the year extremely vulnerable. The response to earnings, and the corresponding wave structure, this week appears to be key to identifying the larger trend with confidence in my view.


  2. Hey there Todd, yes, I agree, still is more corrective looking for right now.

  3. I still believe this is an ED for wave C. This latest rally is wave B.

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