After the close, The SPX just keeps plowing higher, making a new high once again, confirming that the trend is UP. I took off all the counts for most of this month off of the chart, it is getting ridiculous trying to count this mess, and I have no problems saying that I have no clue what the count is now. Trying to count this corrective mess at this point is a waste of time, just too many things going on with the squiggles, and too many ways to interpret them, plus I want to avoid forcing counts. The SPX has most likely adopted the new channel and has been respecting that for the last 5-6 weeks. The market is oversold, and there are divergences everywhere, but until we start making lower lows, the trend will continue up. Hopefully in the next couple of trading sessions the counts will start making more sense, we are due for a mild correction at the least, and a major correction would not surprise me at these levels now that we are closing in on two straight months with no sizable corrections what so every.Breadth for the day ended at 2.47:1, advancers.
Levels for the trend are a minor low at 1190.19, and a major low at 1183.68, which would most likely have me change the trend to down, depending on how we break that level.
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7:52, The spx is trying to make a new highs, but it seems trendline resistance is hampering that effort.
Hi Michael, thanks for great charts!!! how do you manage fib fans in stockcharts? can you pls. help me? I find it very usefull tool indeed...
ReplyDeletePetronius
good blog
ReplyDeletei think that sp is neutral and bear.
The reistence 1214 is very important
www.mercadosbull.blogspot.com
Petronius, at the top of the blog, there is a link "all about fib fans" on there you can see how I set them up in Stockcharts, :)
ReplyDeleteThanks Michael, will look into that, keep up the very good blog!!!
ReplyDeleteI saw a comment on another blog which made sense. They thought as things deteriorate in Europe [Greece,Spain, Portugal,Ireland, etc] you will see money from Europe pour into our market [including precious metals] to protect their wealth from the sinking Euro. Makes sense to me.
ReplyDeleteMichael I am curious as to what you feel constitutes a mild or major correction. I am suspicious that everything possible is being done to prevent the former, knowing that at these levels it could very easily morph into the latter.
ReplyDeleteKim, as for the theory about money coming to the US because of foreign (read Eurozone) issues this does not explain why darn near every European market is hitting 52 week highs. Look at the French (CAC) market fly and they apparently have the most foreign money tied up in Greek debt!