Friday, December 12, 2008

Update

10 minute SPX chart below. Note that we came back up and “kissed” the light blue bear wedge bottom. We are also right back at that same old triangle bottom, the dark blue line that is now at the 860 level. That line has acted like a magnet for the past two months. Note the stochastic is coming up out of oversold.



The chart below is the 60 minute SPX. Note the clean break of the wedge. The fast stochastic is oversold, but the slow is still pointing down. The 860 level is also the 61.8% retrace line of the ‘a’ move up, and so far we have thrown a pin through it, but it is holding so far.



Interesting action, still a lot of crosscurrents but I think the sell signal on the daily charts will prevail for a short while.