Here is a five minute bar chart of the cash S&P 500 for the past 10 days or so. The market has been trading sideways and forming what I think will prove to be a base for a substantial upmove. What interests me about this chart is the steady succession of higher lows shown by the short green lines I have drawn. This suggests that buyers have to keep raising their bids to get the stock they want. In my opinion this portends an upside breakout from this trading range.
Thursday, February 26, 2009
Pressure Builds
Here is a five minute bar chart of the cash S&P 500 for the past 10 days or so. The market has been trading sideways and forming what I think will prove to be a base for a substantial upmove. What interests me about this chart is the steady succession of higher lows shown by the short green lines I have drawn. This suggests that buyers have to keep raising their bids to get the stock they want. In my opinion this portends an upside breakout from this trading range.
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10 comments:
hello carl..great chart, it would be interesting to see the associated volume. this is either a bottom or (for us bears) a more typical pennant which will break decisively to the downside, either way we should find out soon.
good trading
Cal, doesn't that look like a triangle pattern getting ready to break towards the downside, instead of up?
sorry for the name misspelling - I didn't do a proper job of reading before I hit publish.
Dave
covered ES short fromm 777 at 761
Rick B.
Hi carl
i post my cycles from time to time here. so here goes , there is a short term cycle which calls for a low friday feb 27th yet the 2 year cycle which has been damn near dead on in its swings from june 2008 is calling for a bottom
march 6th 9th . there is another 46
year sub cycle which is now passing and is pointing up into june 2009 there is a 14 year sub cycle which is also pointing up into june 2009 . i have another short term cycle which says up into march 11th then down into march 27th then bullish into june augest 2009 . so there is several bearish cycles ending and several bullish cycles begining now .
and to add to this the banking sector BKX just completed 5 waves up on a 60 minute chart . all very constructive signs now taking place .
good luck
Joe
S&p not holding 765.. anyone concerned? how do you guys think we are going to end today?
no sign of any bottom. yet.
It also looks like an inverted head and shoulders, which would give a target of 830. although as bad economic data keeps coming in I don't see any sustained rally for some time.
Also a textbook reverse head and shoulders. Another dip down wouldn't exactly surprise me, but I have to go with Carl on this one. Even the waves up have that funky look of corrective rallies in an overall bear market--of which we may have completed the first big leg down, finally.
A tricky one, though.
John M
Hi Carl - This is great info. I am a newbie at charting and learning a lot. What's amazing to me is how many times you can be wrong and still make money! I'm learning the value of stops and not trading when there is uncertainty -- Jeff
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