Short Term Trading Member Forum

[techcharter]

I see 2 Triangle in SPX Futures

The first triangle (late Oct 21st to very early Oct 25th) I mentioned a couple days ago. The more recent triangle (late Oct 27th to very early Oct 29th) has completed, and its wave 5 of same degree looks complete.

http://charts.insidestocks.com/chart.asp?sym=esz13&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

On a cycle basis the SPX is a little more than half way through a 6-7 week cycle. I'm using measured, not nominal time.

Cycle Lows:
Late June to Late Aug = 8 weeks
Late Aug to Early Oct = 7 weeks
Early Oct to Mid Nov??? = 6 to 7 weeks, we're 1/2 way there.
Notice how the period is shrinking.

Highs:
Early Aug to Mid Sept = 7 weeks
Mid Sept to Late Oct??? = 6 weeks, that's right now

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

I see no negative divergences on the Stochastics or the MACD. The Relative Strength Indicator (RSI)potentially could form a slight negative divergence. I do see a negative divergence with volume. Since late June 2013, price has been rising on declining volume for the first 2 cycles above. There has been a slight pickup in volume during this 3rd cycle; however, the last four days have all been gains on declining volume after 3 weeks of rally.

E-waves, cycles, and volume are signalling a near term top.