Most of these were in crashes and it would have been safe to short after those days. A couple were not: 3/8/96 and 10/27/97 had immediate recoveries and would have been burns.
That bottom candle on the low in question looks really, really skinny to me. Might be a one-day “V” shaped bottom that everyone expects to get retested but it never does. Right now, everyone and their mother thinks this is a bearish triangle and we're going to break downwards. What if they're wrong?
Yeah… it's brutal all right, that's for sure. But, when I look at the month charts and the weekly charts, the moving averages haven't crossed back down over each other on either chart. That means we are still headed up, after this correction is done next week.
I like it Dreadwin, as you may already know, Sundancer also caught a fake print of DIA 118.16 (about DOW 11,816) about a week or so ago. That will be the final high that you have in your chart.
So yes, after this shake out is finished next week, we are going back up…
Also, wondering what Jim Cramer meant by saying dont buy until dow 9000 last night
The SPY 105.00 de-lever tick is co-relational to a back test of a weekly containment pt.
http://www.flickr.com/photos/47091634@N04/45890…
The gold line will coincidentally be in the low 1050's next week.
$SPX % setup
1219.8 = 16.78%
16.78/4.56 = -3.679% (1174.93)
OR
16.78/1.245= -13.47% (1055.5)
For those that want to try and bottom tick it, the final harvest of speculative capital from the previous bull mkt. ended @ 1.18 mult.
16.78/1.18 = 14.22% (1046.35)
Factoid – 10 worst advance/decline percentage days since 1965:
10/09/79 3.4%
10/16/87 5.5
10/19/87 2.6
10/26/87 6.0
03/08/96 5.7
10/27/97 5.3
09/15/08 5.5
09/17/08 5.9
09/29/08 5.0
05/06/10 4.5 (#3 in percentage rank)
Most of these were in crashes and it would have been safe to short after those days. A couple were not: 3/8/96 and 10/27/97 had immediate recoveries and would have been burns.
NIce chart, Dreadwin.
Long term charts are hard to love as I want to think day-to-day, but you make a good point about the possibility of quite a bit of upside on the way.
That bottom candle on the low in question looks really, really skinny to me. Might be a one-day “V” shaped bottom that everyone expects to get retested but it never does. Right now, everyone and their mother thinks this is a bearish triangle and we're going to break downwards. What if they're wrong?
Yeah… it's brutal all right, that's for sure. But, when I look at the month charts and the weekly charts, the moving averages haven't crossed back down over each other on either chart. That means we are still headed up, after this correction is done next week.
The last high without a buy signal (at least, not by that method) … that's just brutal.
I like it Dreadwin, as you may already know, Sundancer also caught a fake print of DIA 118.16 (about DOW 11,816) about a week or so ago. That will be the final high that you have in your chart.
So yes, after this shake out is finished next week, we are going back up…
Well, it's good to know you're at least able to read it girl. Definitely a lot to be learned, and understood, as this market is very complex.
Alternative scenario: bullish chart.
http://www.screencast.com/users/dreadwin/folder…