Saturday, December 3, 2011

Weekend Thoughts

The market bounced at the mid channel and a daily MACD buy signal confirmed to boot. The first challenge will be the red descending trendline, which is currently near 1320.

3 Push

If you are a long time reader, you have seen this chart before. I  posted this for the first time here and periodically updated it over the months.

I just stumbled upon this again and noticed that this may be repeating for the 4th time. Will it? Who knows. It surely did three times after contemplating this the first time around.

Notice that after crossing the yellow horizontal resistance levels, the market cleared their respective descending trendlines in yellow, green and red?

If this is going to repeat for a 4th time, SPX will have to clear 1292 (current yellow horizontal resistance level)  and then the grey descending trendline at approximately 1340.

One very noticeable difference this time is where T3 of the MACD  hit. It dropped well below the trendline whereas in previous instances it found support at the trendline.

If you are interested in reading about the progress of this chart since the first post, click on the "SPX Trendline" link or label at the bottom of this post or to the right of the blog.
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