lowtrade

[lowtrade]

Cool thanks for clearing that up. I do the same thing for general "all boats" action on the market. But use the S&P, because that index has the largest company base and range in industries.

I use the rubber band effect to judge market corrections. I'm not Warren and don't invest decades. Only care about the next Q, being a swing trader or position trader. Also watch for double tops and heads & shoulders on the S&P. And your correct about 2 to 5% needed for killing a double top. IMO

I'm also a market BULL. Called 1360 in Q1 and we're at 1400. Notice the basing at 1360. The S&P trajectory is perfect for continued climb. It's staying comfortably below the 6% and way below the 8% channel from the 50 day. Plus there is no bump & run pattern yet. So your preaching to the quire. I had concern for a correction late Jan and early Feb. But that has passed.

The Rubber Band effect on the S&P is, expect correction at 6%, correction will come at 8%. That correction snapes the price back to the 50 day. This is one of my Rule of Thumbs. which I rely on every time. It's what tells me to get on the sidelines for a while. Because "all boats" on the market are headed south.