SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : The 56 Point TA; Charts With an Attitude
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: JBH who wrote (34864)4/3/2000 11:39:00 AM
From: Doug R  Read Replies (3) of 79230
 
JBH,

Picture a seesaw floating on choppy waters. The Dow and Nasdaq are at opposite ends. The S&P is the fulcrum.
The tide will raise and lower the fulcrum while the waves bounce the other two indexes around. Therefore my main focus is on the S&P. The trendlines on the S&P show a good intersection on 4/24 at 1438. It's the type of intersection that indicates the S&P will go there. At that time a significant uptrend line on the Dow hits 9800.
There's a right shoulder forming on the Dow. The neckline of the resulting H&S is downtrending....that's the scary kind. The significant uptrend line is above the neckline on 4/24. As the Dow gets about 400 or 500 points from the neckline, fear of a breakdown may cause a selloff of about 300 points around the time that the S&P is moving to test its intersection. Since the neckline on the Dow is of the "scary" variety, traders will start thinking that the neckline will break and the end of the world is coming.
Now the scene shifts to the major magnet trendline intersection in David J's charts. That occurs in the same week as the S&P intersection. Magnet trendline intersections mark trend reversals. The trend going into that week will be down. The reversal will be up. The fear created by the threat of a H&S breakdown on the Dow will likely be the type that marks the end of a correction.
IF the reversal is strong enough to take out the H&S to the upside...we get a major move into Sept (with the usual ups and downs along the way of course).
That's what the charts say and time will tell.

Doug R
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News