Chart Abbreviations:

3BC: 3 Black Crows; 3WS: 3 White Soldiers; BeC: Bear Channel; BeE: Bearish Engulfing; BTC: Buy To Close; BTO: Buy To Open; BuC: Bull Channel; BuE: Bullish Engulfing; DCC: Dark Cloud Cover; EnP: Entry Point; ExP: Exit Point; FW: Falling Wedge; HL: Higher Low; HH: Higher High; HM: Hanging Man; IR: Island Reversal; LBB: Lower Bollinger Band; LL: Lower Low; LH: Lower High; LPP: Lock Profit Point; MBB: Middle Bollinger Band; NABOP: Not A Bottom Out Pattern; NATOP: Not A Top Out Pattern; R: Resistance Line; RW: Rising Wedge; S: Support Line; SLO: Stop limit Order; SMO: Stop Market Order; STC: Sell To Close; STO: Sell To Open; T: Target; TSO: Trailing Stop Order; UBB: upper Bollinger Band;

Wednesday, October 28, 2009

SPX Daily Chart

Repeating pattern here, Aug and Sept dips were about the back test to 20 ema, both moved to new session high after the dip, and now, this is the 2nd dip dealing with 50 ema, this time is below 50 ema, very high chance to see that, day low today is a low for this correction, chart wise, it should touch line X and S2 for a bottom, but... due the GDP number out before market open tomorrow, and the last dip didn't touched line X, so, the chance to see a gap up open tomorrow is very high...

X & E (or E') forms an expanding triangle, and S2 was defined by to low spots from July.

Tomorrow could open near 50 ema at 1047, then close above 20 ema (1069).

Today might be a good set up to shake off weak hands, and lure the shorts to enter a short position near day low...

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