There are more than one way to look at a chart. One way look at the behavior is in the form of "Boxes", the support of prior boxes becomes resistance to lower boxes. The 2052/2078 area has served as support for the retracement of the April May advance for quite some time. its breach gave you a sell signal, my sell signal came much earlier, because the 2250 was the bottom of an earlier box (The January Lows), and the failure to get above and stay above coupled with non chart parameters, provided that signal. The market also achieved the target set early April when we just started that rally (first target was 2160 and then 2250, and then 2388, the last we did not get, but if you look at the chart, we were returned back from the first two areas). Our closing above 2078, coupled once more with additional parameters (particularly some unique cycles, including a cycle related to the one that prompted me to call "2050 before June expiry" last month), indicates to me that the current break will be sustainable.
At what point are you going to give a new buy signal or a new sell signal (right now, I understand you are "Neutral"), will that be just be a price target, a time target or a combination of a number of parameters?
Zeev |
