|
OJ,
I'll try my best, but sometimes I manage to confuse myself too. <g>
On the near term SPX chart, I've drawn what I feel are the relevant near term forks. Bear in mind that very near term forking off of daily charts is tricky... and, imo, not always a worthwhile pursuit. Anyway, the lower sloped up fork has its lower tine at about 1149.50 for tomorrow basis SPX. My guess is that that fork will be broken soon, if we continue lower. The down sloped fork I drew is new enough that it has not really been tested (i.e. proven itself), so I will wait and watch... so far it looks okay.
The longer term fork is what I'm watching the most right now. Its middle tine is at 1127 for tomorrow basis SPX (rising a little over 2pts/day). That is a spot where I would expect to see support during a selloff. Also, the down sloped fork's lower tine is at about 1125 tomorrow.
I forgot to draw the sideways fork on the SPX chart. You can see it though on the S&P chart above the SPX chart (and also look at the corresponding bar chart). Imo, those two forks are where the real story is. Either we bounce off of the middle tine of the up fork.... or we continue lower to the middle tine of the sideways fork (about 1048 tomorrow basis SPX, decreasing about a point a day). To that end, tomorrow should be very telling in clearing up that picture. I hope this helps. FYI, I'll be away from my computer for the next few hours, so if I confused you more, let me know... and I'll get back to you in a few. Talk to you later
Regards,
Frank
|
