Sunday, September 18, 2011

$SPX - Similar Bottoming Patterns

The similarity of the recent bottoming pattern compared to mid-June suggests to respect the strength of the current rally. 

My cycle analysis has been working very well in capturing the turn timing for major swings.  Weakness Monday may not last long because the cycle analysis looks very bullish starting later on Monday, and especially Tuesday.

There are several other intriguing patterns that I am monitoring closely.  The price action tomorrow will be important, and I will have further details on that tomorrow. 

On Friday, price was stopped at the red fork line.  I suspect that a pullback here may only test the turquoise fork line, and then the rally may resume once again.

2hour Chart


  1. SC - Which turquoise line? middle (1200) or lower (1160)or is it too early to be specific. If goes to 1160 then it is trad a able move (very short term)

  2. The middle is the one I am thinking. It is just under 1200. So it could be just a shallow pullback.

    I'm curious to see how the morning opens, and the early action is important for several patterns going forward.

  3. SC - Thanks - Yes I agree. My target was showing 1187 or 1177 in cash market. We shall see - no emotion let the market speak.

  4. Hi SC, thanks for the chart update, I am also looking for a rally here to somewhere between 1230-1250 before we drop hard to the 1050 area. What sort of target are you looking at on the upside for this rally? and are you then looking at big drop and if so what is your target on the downside?

  5. EMINI 240 MIN

  6. Any insight on silver?

    And ofcourse obama pla. and effect on silver

    thanks you

  7. Not sure just yet on targets Muzz, but will have charts coming. There are a couple things that I am waiting to see today.

    This should be an exciting week!

  8. Gabe, I was looking at your charts, and you have some arrows indicating dates roughly Sept 23, Oct 6 and Oct 20.

    I am curious if you see these approx dates as significant in your Gann cycle work?

    Currently, I am working on my cycle analysis to see which timing looks most important over the next month.


  9. SC

    Yes.....these are dates in a cycle itself! In my prior post I talked of the 9/21 to 9/23 and in the last post I also mentioned I was going to take short profit as I still have a few days left in where I see time. Also if you look at the swing chart I put up there is room for the retrace but most of the time if the market is to fail it will be much like a failed retest which will catch everyone off guard as it is menat to be! My dates are in the master cycle which I do as a cycle graph 10 to 30 years out much like Gann did! So in reality they are not CIT dates as much as the master cycle graph turns and of course when dealing with the lil cycle inside the large one they can turn out to be nothing more than a CIT if that makes sense! One other thing in daily price movement, price action should take the high out and fail which did not happen on Fri..........that bar was not a momentum failure bar, whcih led me to be teady to take profit and look for the higher failure leading into my date! I will revisit this event if it proves to ne educational to traders down the road! Good trading to all and as usual I appreciate all your work as I understand the time it takes to even have a blog! joed