Short Term Trading Member Forum

[techcharter]

Complex Double Zigzag Near End

As willie pointed out, there is a triangle on most intraday index charts. This implies one more thrust starting tomorrow morning. Post triangle thrusts generally travel the width of the triangle.

Let's use the SPX as a proxy for the others. There are some fib price ratios in play.

Within the Complex Double Zigzag from the March '08 lows, Friday's high makes for a good zag to zig ratio of .786. The Fib time ratio is nearly 1! So does the post intraday triangle rally to Friday's highs, or something higher at a larger degree of trend?

Comparing WAVE 1 (Oct '07 to March '08) to WAVE 2 (March '08 to present), Friday's highs is between the 50% and 60% levels. This could lead on final rally to the 1448 area. The weakness in this case is the time ratio is 29% too far from 33%.

The stochastics are overbought at this level, and could turn down any moment.
The 200 DMA is overhead resistance.
The MACD difference has been decreasing slowly and could go negative any moment.
The Bollinger bands are widening to anticipate future volatility. The price has been following the upper band for a couple of weeks now and will start moving toward the average.

http://stockcharts.com/h-sc/ui?s=$SPX&p=D&yr=0&mn=5&dy=0&id=p29823171596