Short Term Trading Member Forum

[techcharter]

SPX Rally Broke Channels


From the March lows until March 19 the trend channel was very narrow. Since then the channel has more than doubled and rounding over in overlapping advances. The transition from narrow trend channel to overlapping advances signals a turn is near as harmony (market consensus) yields to discord (market disagreement). Engineers would say in phase harmonically related sinusoids are going to out of phase sinusoids with non-harmonically transitioning frequencies.

http://charts.barchart.com/chart.asp?sym=$INX&data=Z60&date=051406&den=HIGH&divd=Y&evnt=ADV&grid=Y&jav=ADV&size=D&sky=Y&sly=N&vol=Y&late=Y&ch1=011&arga=&argb=&argc=&ov1=&argd=&arge=&argf=&ch2=&argg=&argh=&argi=&ov2=&argj=&argk=&argl=&code=BSTKIC&org=stk