SPX made a HH and HL and closed in the positive that is positive for the markets. It was kind of a cloud walk day. SPX gapped up at the open made the low of the day just a few minutes before 7. After the real estate news it made the first high at 7.47 and then a quick pull back to of 68% of the range till then by 8.40. A shallow rally followed that took it to the high of the day at 3.15. SPX lost 38% of the range of the day by close. It closed at 1296 slightly above the intra day high from 19th. The range was 9 points and the action was brisk. RUT did similar.
The chart on right is TNA hourly. This channel has proved to be more effective than I thought. I wasn't following it. I was busy with Gann and missed a good chance at the low of TNA. The decline stopped at 38% and at the bottom of the channel. Now this counter rally should stop at the 12.5% around 75.9 and a new decline should take TNA to 61.8% at 62.5. Well I plan to watch this more keenly.
The chart on left is SPX 4 hour chart. Actually the first bar is at 9 and second is at 1.00 close. The Doma is 34 points. While I was getting all exited about the decline from 1296 looking at this I notice it was nothing. However it form a perfect parallelogram. Should the decline start 1263; 1227 ; 1189 are not bad targets and final blow off to 44% at 1172 is O.K. by me. First it hasn't started yet.
Today was day 144 and big things were supposed to happen. They sort of did but not with a big bang. All the ingredients were there for a top. O calling the stock roaring; 144 day; EW count; Adjusted sq. of 9 at 1299; Channels; closing at high of day; BUT the soup didn't come together. I personally do not like push the expected top by nickel and dime every day. If we do not get a decline from the 76 level in TNA I will change my tune and go long and very seriously switch the analysis to rally and decline levels (Fib. and Gann.) instead of graphs and trend line.
I am still bearish.
Thanks for reading my blog.