Short Term Trading Member Forum

[techcharter]

SPX Ending Diagonal?


Both these charts show a 2-3 day triangle in a wave 4 position. Last Wednesday's high and wave 4 triangle overlap. wave 3 looks like a zigzag. THe sum of these structures indicate 1.) there is one more thrust up tomorrow before the 2 1/2 week rally is over. It may even happen in the overnight futures 2) a potentially longer term wave is finishing.

Volume is showing a huge divergence. Volume increased as the market sold off in October '09. Volume decreased with increasing price this November '09 rally. In fact the November rally has had the lowest average volume of the entire rally starting in March '09. THis is distribution.

The price tagged the upper bollinger bands Monday, which are widening. Since then the price has pulled away. Support to the downside is giving way to anticipated volatility.

The Relative Strength Indicator will have made 3 lower highs as the price made 3 high highs. This is a HUGE divergence.

http://bigcharts.marketwatch.com/advchart/frames/frames.asp?symb=spx&time=&freq=

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

http://stockcharts.com/h-sc/ui?s=$SPX&p=D&yr=0&mn=9&dy=0&id=p72393425156