Rule-Based Trading Systems

[NASARAVI]

northam43:

Based on weekly charts, monthly 3,8 cross is inevitable in the next few days.

We will wait for your charts to lead us the way.

I gut feel says that this whole run from Mar 2009 till April 2010 is a three peaks and a domed house scenario and the point 28 should test point 10 (869), which also is a 62% retrace of the whole run. Timing is what I cannot predict.

I consider 23 as the top at 1219. 1065 was point 24. We did finish 25 (at the recent SPX high at 1173) and are on to 26 at 1000-1040 (your note). We get one more up to 27 and then down to 28 (at SPX 869) to finish the domed house.

It could bounce first at the 320 dma and then make a lower low later.

Regards.