Tuesday, July 6, 2010

Some charts

Double FIBs

I had posted this one earlier on TTW:

This here is one that struck me as quite important, whenever you have double FIB price levels we have to respect them quite a bit more compared to single FIB levels. One of them is the big all time high to 666 and of course our last rally off the lows.

As we are looking at a longer term chart we have to assume that the resolution (if at all) on any upside will be a bit stronger. One of my biggest challenges in 09 was the understanding of the break of 38% fib levels as we kept on rallying in 09. This break paved the way for more upside and broke my views of SPX480

Dont worry - got lots of bearish charts too but this is what currently supports my positions so I wanted to share it with everyone.

ABC Time

This is another bullish beauty. This is a time study from top to B top (if this is a correction) to final C low.

2009 Jun-Jul: 15 days top to top, 5 days to bottom
2010 Jan-Feb: 11 days top to top, 4 days to bottom
Now: 40 days top to top, 9 days to bottom

We are fairly close time wise however our correction has been a lot stronger in terms of price and overall duration. One argument for this length of the duration of course is hitting an important price point of 61% of the entire bear in addition to our crash lows that have severely damaged supply and demand in the 1040-1180 price range. We can also do other studies on those previous ABCs for more accurate time relationships but this one stuck with me a bit more.

More coming this week.

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