Short Term Trading Member Forum

[techcharter]

PT's Chart

I'm seeing a couple key patterns on the close-up chart you posted.

1.) The e-wave of last week's decline was a triangle. The volume during this decline was decreasing. These imply the decline was the last short term pullback of the larger degree.

2.) The rally out of last Friday's low looks like a zigzag, a corrective pattern. Wave 5 should be impulsive, so a corrective advance implies the wave 4 correction may continue some more, OR an wave 5 ending diagonal may be at hand. Target of 940+ still very much possible.

On this larger chart:

1.) I see the stochastic making a lower low while the price moved up, a divergence warming of a top.

2.) Let's not ignore the 800 lb gorilla in the room. The 200 DMA is resistance at 940, a line I really think will be broken to trigger computer trading to buy agressively before individuals dump shares.

http://stockcharts.com/h-sc/ui?s=$spx&p=D&yr=0&mn=6&dy=0&id=p75635173805