Thursday, November 4, 2010

Easy to remember spx 1200 and republicans take congress

SPX had a HH and LL and made a intraday reversal.  Yesterday was  barely HH and HL and the day before was another outside day.  This is definitely some kind of a distribution or high level accumulation.  SPX was in a very narrow trading range contrary to what the after hour trading was telling. Election did not have an effect on the markets today.  After the FOMC and fed announcement of 600 billion of more buying of our own debt the markets had its usual fits and ended the day up.  
Whatever the reason TNA and SPX broke thru some major resistance lines.  I have looked at all angles ,all trend lines ,and all indicators there is nothing that is jumping out and saying its a top like they did a few days ago.  The resistance have been busted and we have to assume we are going up. I wanted this market to come down it looked so ripe but if it doesn't then it doesn't.  I am bullish   
The chart on the right is hourly spx and I have redrawn the channels to show the bullish side. Unless something significant happens and we see spx drift towards the bottom my  forecast will be for spx to go and hit the top line of the channel and that is some where around 1300.

The chart on the left is daily spx.  Here I see a reverse head and shoulders and the top on that I project to be around 1230.  I know it doesn't much to forecast a 30 points higher from where we are but that may be the point where we take a breather before marching towards the 1300. 
I feel like an independent who voted republican because he couldn't stand the democrats this go around. On the same lines I am very reluctantly bullish and will tune myself to play the long side.  Its still with the signals.  I lost some money this week.

1 comment:

  1. Dino

    gann info - 144 btw alphahorn has been poinitng to nov 17, a gann 144 day by his count