Replies to post #51135 on ajtj99's Market Pulse

[ajtj99]

Since that SOX line is an adjusted falling resistance line that's been taken out previously, I believe the more significant line is the 454 line through the 449 line. Either way, I think the SOX pauses here, re-traces to 410-415, then moves up to 470-485.

I think the Dow will hit that 10,620 on Tuesday, but will re-trace to 10,400 over the next month after that prior to the next leg up towards the 11,250 target.

Tran 3948 target for the inverse H&S.

I think the WLSH may test the 11,600 shelf for the right shoulder.

Interesting how the theory of nested inverse H&S patterns is playing out almost as anticipated. It looks like the COMP neckline will form at 2100, followed by a 3-week re-trace towards maybe 2023 or 2005.

[ajtj99]

BTW, check out the TNX daily chart. It really appears to have bottomed and sports a falling wedge to boot. I think the TNX will form an inverse H&S pattern with the neckline at 42.92. The resulting target would be 45.82, which would likely be the location of the 3rd lower high off the line drawn starting from the 49.04 TNX highs:

Daily chart (don't forget TNX gaps always fill, except the one at 34). Gap at 43.50.

http://stockcharts.com/def/servlet/SC.web?c=$tnx,uu[h,a]waclyyay[pb20!b50!b200!c13!c20!c50!i!d20,2!f...

Weekly TNX chart:

http://stockcharts.com/def/servlet/SC.web?c=$tnx,uu[h,a]waclyyay[pb20!b50!b200!c13!c20!c50!i!d20,2!f...

I will go against Bill Gross on this read, and I kind of like that <G>