Replies to post #78449 on ajtj99's Market Pulse

[LG]

ajt: I had that falling resistance line on my weekly SPX chart, but I removed it because TradeStation moves it around so much depending on how much I compress the bars and or how large the chart is, I just couldn't depend on it.

I am not sure what the problem is...

I would add the Rising Wedge Support line to your chart. Since I know you plot your trend lines as do I, I'll just give you the starting anchor points I've used...

Resistance Trend line (High on 3/5/04
Supportive Trend Line (Low on 8/12/04)

Regards,
LG

[Namiar]

Nice chart AJ - thanks for sharing the work. A few questions:

1) It seems like the last time your major RSL was breached (july 2005), it rebounded some and then ultimately spent several weeks looking for a new low. Assuming the same happens this time - lets say we rebound some into next week and then work down to a new low perhaps in your preferred 1250 area over a period of a few weeks.
Is there something in the chart that leads you to believe a trip to 1168 is forthcoming in the fall? As opposed to launching to another local high maybe near 1400? Or do you use other criteria?

2) I assume that 2 or more support lines converging in the same area has magnified magnetic powers? I notice that you are also drawing ceiling lines that marks previous major high points. Do these have as much influence on your decisions as the RSL's??