Replies to post #2734 on Rule-Based Trading Systems

[NASARAVI]

northam43:

Sorry for the delayed reply...have been busy with the launch of Atlantis and post-launch activities.

I would like take this opportunity to sincerely thank you for your enormous effort in describing the three time frames and assessment of the market direction.

Thanks for sharing your simple method.

I am watching the EMA3/EMA8 cross on all time frames now to see where we are. I am also not sure whether monthly 3/8 will cross down.

Please keep us informed if the monthly turns down and targets thereof. If we bottom, please denote the same.

TIA and Regards.

[northam43]

SPX cycle update:

On the Daily chart, the upper trend line(UTL) price has now dropped from 1174.22 to 1165.47 a drop of 8.75 points in two days. If this continues on Thursday the UTL will be around 1157 and on Friday it will be at 1152.

I still believe by Friday the SPX Daily may hit the UTL and then go lower. That would then start a new Daily cycle and it could then push the weekly to new cycle lows.

[northam43]

SPX Weekly cycle:

Last week the SPX weekly cycle Phase I hit a low of 1055.9

That could be the cycle low. However, at this point the weekly is still below the lower trend line. So a new low is still very possible. When the price rises above the lower trend line, then the probability of a new cycle low will diminish.

This is the 3rd week of this weekly Phase I cycle. The average weekly Phase I is 6.5 weeks.