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Tuesday, May 25, 2010

Mirror Image

SPX and FAS were hit and hit hard at the opening.  Dow was down 290+ points SPX down 35 points and FAS down 2.  Looked like the end of day we would be down 500+ dow points.  Not to be.  DKOD from yesterday worked well.  It is now 23/25.  We have LH and LL on FAS and SPX implying the trend is still down.  However the rally was impressive.  FAS is back inside the envelopes on 60, 30, and 15 minutes.  That is positive.  Tuesdays are generally (68%) opposites of Mondays.  I wasn't aware that sometimes they can be so exact.  The two charts above shows todays FAS and Yesterdays FAS 1 minute.  I would say they are mirror image. DMRM worked real well today and so did D2PL.  I will put some effort in the next day or two to see if they can be combined
The chart on right is that of SPX Daily in channels.  Today's 1040 bottom is close to a previous bottom at 1044.5 . But my observation has been bottoms are made at previous tops and not at previous bottoms.  After the 2-3 days of window dressing the SPX should revert back  to its trend and catch the 956 for a bottom.  I am not totally bearish but am ready play a few bullish hands. 

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