the setup is a little complex as it involves some stats, it's not a defined visual pattern, the trigger for this setup is the highest period (in the case: monthly) close which is why the 1115.10 number is so important.
if we get a monthly close above $SPX 1115.10, a setup will be in place for a multi-month reversal.
Since 1990 there has been 4 occurrences of this setup on the monthly, 3 have been successful and 1 has failed.
Dates of prior monthly setups: 10/2007: success; major top 08/2000: success; major top 06/1999: success; 3 month reversal 04/1997: failed; monthly close @ 801 propelled market higher to 1190 before a major reaction
Thaks, looks like you are looking for us to touch the blue line. At what level would that be for vix? Around 16?
$VIX chart
http://www.flickr.com/photos/47091634@N04/43856…
Not trading anything at the moment. I'm waiting for the market to give me a clue first 🙂
That makes more sense at this point, as long as that lower channel line holds.
May be b/c they are not looking for Pee 3? lol
the setup is a little complex as it involves some stats, it's not a defined visual pattern, the trigger for this setup is the highest period (in the case: monthly) close which is why the 1115.10 number is so important.
Hi, Can you expand on the 'setup'? I see 1115.10 is dec closing, but don't know what pattern i'm looking for.
Thanks from a newbie.
Carl went long one unit /ES at 1095.50
yes, because of setups on larger time frames
***IF***
if we get a monthly close above $SPX 1115.10, a setup will be in place for a multi-month reversal.
Since 1990 there has been 4 occurrences of this setup on the monthly, 3 have been successful and 1 has failed.
Dates of prior monthly setups:
10/2007: success; major top
08/2000: success; major top
06/1999: success; 3 month reversal
04/1997: failed; monthly close @ 801 propelled market higher to 1190 before a major reaction