Tuesday, May 25, 2010

SPX - dominant trend

Following up on my post from last night, here is the current SPX Daily chart with a potential EW count that suggests an initial target of 925-975 for this move:

SPX Daily Trend Model

I still find it fascinating how prices tend to approach the trend line on retracements, then fall short and resume the dominant trend.  Look at the most recent set of blue candles, five "up" candles that retraced to the vicinity of the trend line around May 10-14, then  resumed the downtrend.  This pattern may very well provide additional entry points in sync with the dominant trend.


1 comment:

Anonymous said...

Thanks Allan,
looking for etf under $10 got any one you prefer?