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Thursday, May 21, 2009

I Like This Chart a Lot Too.


EDIT: I edited the chart to say Y = 1.618 x W

This chart is more realistic than a bullish ride back to the 920's at this point. In fact I like it better. This aligns better with the technicals I think.

So keep an eye on those support resistance levels and how the market interacts.

What is clear is the 5 wave down pattern today. That can be linked to a C wave (the flat I showed in my update tonight) or the beginning of a 5-3-5 zig zag move that takes the SPX under 875.

9 comments:

  1. Dan, you are correct this time!

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  2. Since the market will fill the gaps tomorrow

    875 should be broken by next week...

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  3. I vote for this one. Please go ahead and place the request for it to happen. ;-) Thanks as always for sharing your work.

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  4. Let see how far the market will push up tomorrow...
    Target 905

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  5. I agree that this is more in line with the current TA. Thanks again Dan.

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  6. Agree Dan. 896 is today's opening gap resistance (plus 38% as you point out). 50-EMA on 30-min somewhere there as well. Noticed how pink (v) of green [a] was 62% of length of pink (i).

    879 retrace too shallow. Up move fits in nicely with a Friday rally to close the longs for memorial day. Friday close may not (as usual) provide any definitive clues.

    Thanks for the chart!

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  7. Really like how the chart demonstrates it may take the 3 of C down to break through 879 support.

    As evenly matched as the bull/bear balance has been lately, it's easy to believe.

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  8. That's my primary!
    Super analysis Dan.
    In my read you're second only to Hoch.
    -pat

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  9. dan, thanks as always for your diligent work. I personally believe a rebound back between 906 to 910, but would be more pleased to see the rebound back up to 920. You predicted a few days back for a bullish trend by the market to re test 930 which I continously stand by this possible prediction of yours. We came close to touch 875 today to stop around 879. Continuous side way correction back and forth in the next few days is expected, but we will eventually push a higher high into June, don't you think? Kass predicts SPX 1040. I think that we get there sometimes in June and then maybe with some sizable pull back in July. I just don't see the bull let go at this point. Their goal is at least SPX 1000. Maybe the bear will have its chance after the bull has its trophy of 1000 first. Meanwhile, the bears can continuously trading whipsaw back and forth, but carefully based on right timing. That is just my personal view.

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