DEC 25 INDEX UPDATE
-------------------------
Havent been keeping up with all the posts recently, so in case it hasn't yet been mentioned. There appears to be some significant bullish patterns(DECLINING FLAGS) developing on the DOW/SPX/NDX. They are not perfect since some have overshoots and in the case of the SPX and NDX the lines are not completely parralel, but close. Since the timeframe may be a bit on the long side, they just may be trend channels, regardless it should be mentioned in case they are actually BULLISH FLAGs.
DOW
UPPER TRENDLINE - HIGHs of 11/6, 11/8, 12/5, 12/13
LOWER TRENDLINE - LOWs of 11/13, 11/22, 11/30, 12/1, 12/4, 12/21(with some overshoot)
SPX
UPPER TRENDLINE - HIGHs of 9/1, 11/6, 11/7, 11/8, 12/11, 12/13
LOWER TRENDLINE - LOWs of 11/13, 11/30, 12/20, 12/21
NDX
UPPER TRENDLINE - HIGHs of 9/20, 9/25, 9/28, 10/20, 10/23, 10/24, 11/3, 11/6, 12/11
LOWER TRENDLINE - LOWs of 10/12, 10/13, 11/30, 12/20, 12/21
So if these formations are actually BULLISH FLAGs, then we have the possibility of a strong upside move.
Just a reminder that, statistically, declines greater than 7% have a strong probabilty of some sort of a retest, whether the retest fails or succeeds. Whether this possible retest occurs soon or after some time, who knows, but to ignore the possibility of a retest may not be wise. Keep in mind that since SEPT every NEW LOW was retested and failed. Eventually, there will be a successful retest, or less likely a "V-SHAPPED" rebound.
Merry Christmas |
