Wednesday, December 22, 2010

SPX 1290?? Or a top?

These three charts below seem to indicate the market may intend to hit this level.

Do we have a top? Got your attention again? We'll have to see. Check out the last chart below.

I may have posted this chart from time to time. I was just taking a look at it again and low and behold, the market is approaching another trendline and the structure appears to count complete.

What I find most interesting about this chart is how the trendlines are drawn. I first drew the top and bottom ones using the reaction highs and lows. I next attempted to bisect (eye-balling method) the expanding triangle. Notice how price taps and respects this trendline a few times.

Finally I further bisected the upper and lower expanding triangles and once again price appears to oscillate around these lines in a meaningful way. Hmmm....
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