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Saturday, November 24, 2012

$SPX - Surprise Rally Update

From the geometry it is clear why SPX bottomed at the price level that it did.  This configuration should prove helpful now in defining support and resistance levels. 

The surprise rally phase commenced for SPX with strength, and price is nearing the first target area outlined in previous analysis.

A moderate dip to around the pink midfork is likely once the target zone above is tested.  SPX may rattle up and down several times to consolidate in the upper half of the pink fork before advancing much.            

2hour Chart

17 comments:

  1. Currently my position is 31 points in profit, and plan to take profit early next week. Short term upside looks limited with dip soon.

    Basically I think we are going spend weeks in the upper half of the pink fork bouncing up and down about 3 times.

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    Replies
    1. Hi SC, would you have any target in mind for Silver by mid December? Weak SPX, Strong dollar should serve PM down, I think. Thanks!

      Delete
    2. Silver trading well in tune with the Oct plan.

      I am expecting a lot of chop for SPX short term now, and likely that will be the case for Silver as well.

      I have a chart coming relating to silver that will blow some minds... Incredibly profitable situation setting up.

      SCOctober 17, 2012 6:13 AM

      "For Silver $32 is important support imo. It may dip to test this level first, but I think overall it is forming a base for another strong bounce."

      Delete
  2. XIV was a beauty. Up 23% since then.

    This is a tiny move compared to the one I see coming though. Progressing through the phases. One step at a time. I'll show the charts when the time is right. The picture is worth a thousand words.

    SCNovember 8, 2012 5:46 AM

    "I'll probably go long XIV later today or tomorrow. I do think the market will likely take a few days to absorb, and solidify here so likely quiet for a few days. Next week I expect the positive cycle to hit, and it should be powerful.

    Within a week or so it would not surprise me to see a 50 point plus up day on SPX."

    ReplyDelete
  3. SC,
    for SPX, is your analysis still showing a broadening top formation (posted September)? If so, do you foresee price reaching 1500 +/- by 2nd week in January, or do you think SPX upside is limited to ??? thx

    ReplyDelete
  4. Yes, the broadening top formation is playing out in my view. I think SPX will test near the turquoise/green line on this chart above.

    It could overshoot it a little even, but important to be cautious up there as will be detailed soon with my bigger picture charts.

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  5. Thanks SC , earlier you mentioned strong + cycle lasting into 1st week Dec., followed by correction to 1360. Picture has changed now, but if strong cycle still in play (I agree also), wouldn't another strong leg higher to 1440-1455 be more probable than chop in upper pink channel? Then correction back into pink channel in mid Dec and then continue+ into early-mid Jan. Your thoughts. Also, can you post an outlook chart on silver? PMs look poised to break up from a nice cup/handle formation. thank you

    ReplyDelete
    Replies
    1. I'm going to show a closer up view of the pink channel. Basically for now I see resistance in the 1420's and support in the 1370's and 1380's. I still think higher first week of Dec but not too much.

      Once SPX consolidates in the upper pink channel for several weeks, then it will be ready for another surge higher imo.

      Delete
  6. Traders have become obsessed with the tiny movements in the 2012 market.

    Who wants to see some mind blowing big picture charts?

    ReplyDelete
    Replies
    1. Hi Sc
      I amognst other's would luv to see the mind blowing sharts

      Delete
  7. I have been waiting and would like to see the long term charts of uvxy. Thanks for your hard work!

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  8. Very well then, I've been waiting for the right time, and I will post big picture charts starting today. There are many detailed charts that I want to post in order to show a complete analysis.

    Therefore, big picture analysis will keep coming throughout November and December.

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  9. DOW UPDATE

    http://traderjoed.blogspot.com/

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  10. Hello Joe,
    Doesn't the TZA up arrows and the dow up arrows contradict each other? as of today

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  11. Joed, the down arrows on Nov 30 dec 7th. Are you looking for a high on those dates? I personally was looking for a low on the Nov 30 th time frame myself.

    Thanks

    ReplyDelete