Custom Search

Monday, July 6, 2009

S&P 500 Bullish Percent Chart

One reason I am slightly in favor of another rally to P2 peak this summer is that this $BPSPX chart has corrected nicely and, all told, prices have not been damaged too too much. Afterall, the SPX peaked at 956 and still today we trade at 898. The 886 low is a total 24% pullback which is a Fib number more or less. The next Fib is 38% (or 845) .

The lowest price I can see happening, and still maintain that a triple ZZ to P2 peak, is a Y = W move which would be about an 864 SPX low for the red Intermediate (X) wave. But that would leave the massive H&S pattern only partially finished on the downside (which of course doesn't matter to me - I track EW's after all).
blog comments powered by Disqus