Triple 000 and Sub-penny Chart Plays

[trader53]

S&P 500 - Symmetrical Triangle BREAKOUT

for Thursday, December 20, 2018




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The Kick-Off Months in the OTC - Jan/Feb - Jun/Jul

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=137701925

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We are expecting a three wave bear market,
similar to 2011 and 2015

During the Wave C
we are expecting the SPX
to break through the recent lows
with a maximum downside target
around SPX 2400 (green line).

After that
the next bull market should begin.

Keep in mind
we are in a Secular generational bull market,
and we are not expecting it to top
until the early 2030’s.



https://caldaro.wordpress.com/




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Since we are expecting a three wave bear market
we are labeling the first decline
as Intermediate wave A,
and the current rally as Intermediate wave B.

Intermediate wave C should naturally follow
once this rally/uptrend concludes.

During the C
we are expecting the SPX
to break through the recent lows
with a maximum downside target
around SPX 2400 (green line).

After that
the next bull market should begin.

Keep in mind
we are in a Secular generational bull market,
and we are not expecting it to top
until the early 2030’s.






MEDIUM TERM: downtrend continues

As noted,
we had thought Monday’s low
was finally the end
of this first bear market downtrend.

We had labeled a tentative Int. A at its low.

But after a 100 - point rally
the market dropped
nearly back to that low again on Friday.

It would appear, as of Friday,
all four indices
will need to make that lower low
before this downtrend can conclude.

We still think the SPX 2577 level should hold.

If not SPX 2550.





The downtrend pattern remains the same:

an a-b-c down A,
an a-b-c up B,
and now
an a-b-c down C.

The entire pattern appears to be
a complex 3-3-3
taking the form of a flat.

Thus far
it looks somewhat similar to Primary 2,
only shorter in duration.

P2 had a 4-month downtrend,
a 1-month uptrend,
then another 4-month downtrend.

This first downtrend
is currently just 2-months.






SHORT TERM:

After Monday’s low
we tracked the advance from SPX 2583 to 2685
as 5 choppy waves up:

2674-2621-2660-2637-2685.

The decline from that high
has been 5 choppy waves down:

2650-2670-2637-2656-2594.

Since the declines
have recently been 7 choppy waves down.

We expect a short 20-point rally soon
and another low to end this wave.

Then another attempt at Intermediate wave B ?





Technically
a small rally, then decline
could setup another hourly positive divergence.

The weekly RSI
is already sitting at a positive divergence.

Maybe the FED will be the catalyst
to put in the final low,
and get Int. wave B underway.

Short term support
is at the 2594 and 2575 pivots,
with resistance at the 2632 and 2656 pivots.

Short term momentum
ended the week oversold.

Best to your options expiration trading!



Best to your trading!

Trade what’s in front of you!

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Symmetrical triangles
are usually continuation patterns
with converging trend lines.

Ideally,
a stock breaks out from a symmetrical triangle
prior to reaching the apex of the triangle
with volume expansion.


Chart Patterns

http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:chart_patterns

Symmetrical Triangle (Continuation)

http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:chart_patterns:symmetrical_triangle_continuation

http://thestockbandit.com/symmetrical-triangle/

http://thepatternsite.com/st.html




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Trend:

In order to qualify as a continuation pattern,
an established trend should exist.

The trend
should be at least a few months old
and the symmetrical triangle
marks a consolidation period
before continuing after the breakout.

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Price Target:

There are two methods
to estimate the extent of the move after the breakout.

First,
the widest distance of the symmetrical triangle
can be measured and applied to the breakout point.

Second,
a trend line can be drawn
parallel to the pattern's trend line
that slopes (up or down) in the direction of the break.

The extension of this line
will mark a potential breakout target.

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Symmetrical triangles
are usually continuation patterns
with converging trend lines.

Ideally,
a stock breaks out from a symmetrical triangle
prior to reaching the apex of the triangle
with volume expansion.

http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:chart_patterns:symmetrical_triangle_continuation

http://thestockbandit.com/symmetrical-triangle/

http://thepatternsite.com/st.html

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http://stockcharts.com/h-sc/ui?s=%24SPX&p=W&yr=1&mn=5&dy=0&id=p84499328034



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