Friday, July 14, 2017 9:43:35 AM
Enough of this Noise, Let's Look at the Bigger Picture
http://www.pretzelcharts.com/
"Last update noted that bears needed to make a stand, but they didn't, so numerous markets ran toward the upper end of the recent noise zone -- which is what happens when you break near-term resistance inside a thinly-traded range. Of course, everyone is now bullish as we reach the upper edge of the noise zone, but now we're into the reverse of the warning I published near the bottom ("Just remember it's never a good idea to get too bearish this close to support -- some signals suggest it will fail, but in the end, either it breaks or it doesn't."). At this point, it's not a good idea to get overly near-term bullish until we see a sustained breakout over resistance.
But near-term noise aside, I think the recent noise zone is becoming a bit of a distraction from the larger view (this may in fact be the market's exact intention) -- so today we're going to step back a bit from all the near-term noise and take a closer look at the big picture.
For our big picture examination, we'll focus on INDU's long-term chart. The option not discussed on this chart is for an extended fifth of v -- I allude to the way a bear would protect themselves from that in the notes (specifically: "watching for completed patterns followed by larger impulsive turns becomes more important") -- but for now, we'll just keep that in the back of our minds and not focus too much on it unless/until the market tells us to."
"Near-term (below), there are still several paths that INDU can take to complete the pattern shown on the long-term chart:"
"SPX has similar options (though lately we can't really rely on anything to move in sync with anything else):"
"In conclusion, the near-term is still a mess, but should clarify fairly directly. Bigger picture, though, it does look like we're going to be completing wave 5 of a larger fifth in the not-too-distant future. When that wave completes, bears should finally get some time in the sun. Trade safe."
http://www.pretzelcharts.com/
"Last update noted that bears needed to make a stand, but they didn't, so numerous markets ran toward the upper end of the recent noise zone -- which is what happens when you break near-term resistance inside a thinly-traded range. Of course, everyone is now bullish as we reach the upper edge of the noise zone, but now we're into the reverse of the warning I published near the bottom ("Just remember it's never a good idea to get too bearish this close to support -- some signals suggest it will fail, but in the end, either it breaks or it doesn't."). At this point, it's not a good idea to get overly near-term bullish until we see a sustained breakout over resistance.
But near-term noise aside, I think the recent noise zone is becoming a bit of a distraction from the larger view (this may in fact be the market's exact intention) -- so today we're going to step back a bit from all the near-term noise and take a closer look at the big picture.
For our big picture examination, we'll focus on INDU's long-term chart. The option not discussed on this chart is for an extended fifth of v -- I allude to the way a bear would protect themselves from that in the notes (specifically: "watching for completed patterns followed by larger impulsive turns becomes more important") -- but for now, we'll just keep that in the back of our minds and not focus too much on it unless/until the market tells us to."
"Near-term (below), there are still several paths that INDU can take to complete the pattern shown on the long-term chart:"
"SPX has similar options (though lately we can't really rely on anything to move in sync with anything else):"
"In conclusion, the near-term is still a mess, but should clarify fairly directly. Bigger picture, though, it does look like we're going to be completing wave 5 of a larger fifth in the not-too-distant future. When that wave completes, bears should finally get some time in the sun. Trade safe."
Join the InvestorsHub Community
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
