SPX Daily Chart - Linear Mode
This post will have multiple charts to show my point behind the title
I test my channeling by inserting fib levels to legitimize it's positioning. Channels can be drawn very subjectively leading to disastrous conclusions. Ask me how I know...
What clues does this channel provide? The median line is a price magnet...reversion to the mean. After hovering in the lower levels of the channel for weeks prices have broken out to the upside. The question at hand is where does the bear market rally end... Here is where it gets interesting.
Here is the same chart with the Fib channel inserted. Notice how well prices have respected the Fib levels. One can only assume this will continue during the channel's useful lifespan. You can see now why those little boxes were drawn on the original chart. We are approaching the .38 fib line next level beyond that is the median line.
Now let's break this down on an hourly basis...
Here is an hourly ES chart. I've labeled the hourly Elliot waves. Do we get to the .38 line and correct? OR... do we possibly get to the median line? What if wave 5 extends and goes parabolic. So far you can make the case that we've just completed wave i & ii of wave v. If that is the case a trip to the median line is certainly within reason as crazy as that seems now....
This post will have multiple charts to show my point behind the title
I test my channeling by inserting fib levels to legitimize it's positioning. Channels can be drawn very subjectively leading to disastrous conclusions. Ask me how I know...
What clues does this channel provide? The median line is a price magnet...reversion to the mean. After hovering in the lower levels of the channel for weeks prices have broken out to the upside. The question at hand is where does the bear market rally end... Here is where it gets interesting.
Here is the same chart with the Fib channel inserted. Notice how well prices have respected the Fib levels. One can only assume this will continue during the channel's useful lifespan. You can see now why those little boxes were drawn on the original chart. We are approaching the .38 fib line next level beyond that is the median line.
Now let's break this down on an hourly basis...
Here is an hourly ES chart. I've labeled the hourly Elliot waves. Do we get to the .38 line and correct? OR... do we possibly get to the median line? What if wave 5 extends and goes parabolic. So far you can make the case that we've just completed wave i & ii of wave v. If that is the case a trip to the median line is certainly within reason as crazy as that seems now....
Comment:
We've arrived at the .38 Fib on the channel. Converging resistance factors here. I would expect some a pause or a topping pattern to develop?
Comment:
At this point I'm anticipating the median line get's a visit....
Such as this:
Such as this:
Comment:
Near Term Support?
