All my technical indicators are rolling over here. Aka stochastics, hanging man candle, 50 day moving average is flat, etc etc. On the chart, the gold dashed line is my prediction of the next 3 days, should the pattern be confirmed. Once again, for the market to confirm this pattern, tomorrows open MUST be red. The question mark marks the juncture/decision point.
When analyzing the S&P futures for the last 37 trading days, it quickly becomes apparent how controlled the moves are within a channel. Usually when a channel bottom or top is thrown over, it suggests a trend change. And let me point out, that the final move is not always in the direction that it broke out in.
And below, I would like to point out the relevance of the red trendline we currently sit right under. It is a major support/resistance line stretching over last two years. The solid red trendlines depict the channel boundaries. Notice how it took many tries to get over this line? Notice how it took many tries to get back under it? Consider this line the rate of change in which people are fearful or would like to sell.
The lines, in between the two major red ones, each represent a Fibonacci retracement levels. It is my belief that Fibonacci retracement levels run perfectly horizontal when moving with the Primary Trend. It is my belief that Fibonacci retracement levels run at angles when moving against the Primary Trend.
Example is: These Fibonacci retracement levels appear to be working at this angle for the last 1.5 years. It is my belief that since this is an angled movement and the direction has been up, that the upwards movement has actually been running against the Primary Trend. If my theory holds, the Primary Trend is still a Bear. I definitely have more reasearch to do on this theory.
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