Print out the entire S&P 500 from the late 20s and get yourself a history book. Look through the history book and note the major events that occurred for each year. Then mark them on the S&P 500 chart. Then you will understand.
ES Journal Archive (2009 - 2010)
- Thread starter Jahajee
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Look at the chart closely.
The low of the u-shape on the left side is 991.97. The high of the pattern is 1016.48. 1016.48-991.97= 24.51
The highest price on the chart is 1039.47. The gap began at 1016.45= 1039.47-1016.45= 23.12
If price breaks upward with tall white candles then Im going to expect it to go to 1039.47 and then 1062.
If price breaks downward then I will expect 991.97 and then 968 area.
Keep in mind that the center pattern is an island reversal. The gap in trading on the right side is not as apparent as the gap in trading on the right side. It is the worst chart pattern and price oftentimes pulls back and exceeds the gap.
You should wait and receive confirmation to go short or long, but this is the juncture I believe.
The low of the u-shape on the left side is 991.97. The high of the pattern is 1016.48. 1016.48-991.97= 24.51
The highest price on the chart is 1039.47. The gap began at 1016.45= 1039.47-1016.45= 23.12
If price breaks upward with tall white candles then Im going to expect it to go to 1039.47 and then 1062.
If price breaks downward then I will expect 991.97 and then 968 area.
Keep in mind that the center pattern is an island reversal. The gap in trading on the right side is not as apparent as the gap in trading on the right side. It is the worst chart pattern and price oftentimes pulls back and exceeds the gap.
You should wait and receive confirmation to go short or long, but this is the juncture I believe.
The clue for next week is the weekly candles. Im 90% certain we sell off either next week or the week after. If its the week after, then this next week will be a mild selloff and the close will be just under this week's close. The next week will be the start of the real slide
Target price is 968 and if it gets past that 875.
Look at the weekly chart year to date for the SPX. The fall will mimic the rise and it will take 5 weeks from now to get to 875. Price will flutter up and down at first and everyone will be confused and indecisive. We will hear calls for much higher price targets, but that will be just hope.
Once we break below the range, it will take another 2 weeks to get to 875. From there on, Im not going to take anymore guesses...
Target price is 968 and if it gets past that 875.
Look at the weekly chart year to date for the SPX. The fall will mimic the rise and it will take 5 weeks from now to get to 875. Price will flutter up and down at first and everyone will be confused and indecisive. We will hear calls for much higher price targets, but that will be just hope.
Once we break below the range, it will take another 2 weeks to get to 875. From there on, Im not going to take anymore guesses...
Im serious. Check out the previous weekly candle painting a shooting star and then a hanging man this week. Go back on the chart and you tell me the last time this happened. You have a strong week up followed by indecision week and then the next week a close that wasnt over the previous week high or close. Thats not bullish and it aint the lottery either.
In general I agree. IMO it would be really extraordinary for price to get above 1016-1018 at this point before probing below 980, at a minimum. 1016 was resistance that failed to become support in very dramatic fashion on Tuesday. That kind of selling does not come out of nowhere, and the big boys holding those big short positions are not just gonna roll over and give it up. Somebody is gonna get screwed bigtime here and the volume is clearly on the short side, even if the shorts are still mostly lurking in the background.
At the same time, I don't see why price can't blast off to new highs if a pullback brings in new buyers. 940s-950s area is IMO a good longer-term buy zone, until it's taken out.
Price is sitting above the Median Pivot Point @ 1010, with R1 @ 1020 and we are currently in an uptrend (as well, I'm defining it).
One of the market's favorite setups is to bounce off the Pivot Point and head directly to R1 in the morning session, lets see if it happens tomorrow.
Good trading
One of the market's favorite setups is to bounce off the Pivot Point and head directly to R1 in the morning session, lets see if it happens tomorrow.
Good trading
I know this is SPX journal, but I couldn't help myself 
Is anybody watching Gold? ImPO we are about to witness $1000 become support, this is Monthly chart, histogram suggests strengthening price action & price recently popped out of the Weekly pennant.
LET THE GOLD RUSH BEGIN! "IN GOLD WE TRUST"
<img src=http://proudatheists.files.wordpress.com/2009/01/papa1.jpg?w=163&h=250>
<img src=http://eldib.files.wordpress.com/2008/12/end.jpg>
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=2566032>
Is anybody watching Gold? ImPO we are about to witness $1000 become support, this is Monthly chart, histogram suggests strengthening price action & price recently popped out of the Weekly pennant.
LET THE GOLD RUSH BEGIN! "IN GOLD WE TRUST"
<img src=http://proudatheists.files.wordpress.com/2009/01/papa1.jpg?w=163&h=250>
<img src=http://eldib.files.wordpress.com/2008/12/end.jpg>
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=2566032>
I was actually looking at a chart of XAU this afternoon and noticed the humongous run-up!
But then when I checked the futures I saw that it has a daytrading margin of about $2,000. So if I were to play in it, I would have to play small, or not at all.
But then when I checked the futures I saw that it has a daytrading margin of about $2,000. So if I were to play in it, I would have to play small, or not at all.
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