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S.P. Update

12/11/09

 

Closing Comments:

 

We failed to even reach the first key level of resistance and obviously failed to trade through the key resistance.

The key resistance levels are

1108.50 to 1110.00

1113.00 to 1114.50

 

Since 904.00 all key resistance levels and key pivotal points have been taken out (90% of the time) in the after hours session. It’s sort of like cheating, but it adds up in the end, and we’re quite near the end. This trading through key levels only during the after hours session should Sunday night

 

According to the USD/Euro/Yen

This is the last move up before the trend reversal.

 

The price action at 1113.50 is crucial. It determines if we extend up on the pattern

 

This pattern is the( immediate term) dominate pattern

C/T (from yesterday)

Pointing UP

Equalizer: 1103.25

Up Price target: 1113.50

Up Extension: Up to 1118.50

Down Price Target: 1093.75

 

We closed the session with a new pattern

C/T

Neutral

Equalizer: 1106.00

Up Price Target:  1119.75

Down Price Target: 1092.00

 

All my Short term patterns are pointing up to 1154.00 to 1156.00

Which is roughly the 50% extension

of the Long term master pattern (from 10/15/08)

 

RCT (from 1/15/09) CASH PRICE

Down Price Target: 652.25 (we reached 665.75)

Up Price Target: 1088.00

Up Extension: Up to 1219.75

As you can see we already reached the up price target and we are currently in the extension.

The above patterns ranger extension count is as such:

131.75 points

66.00 points

33.00 points

1088.00 + 131.75 = 1219.75

1088.00 + 66.00 + 33.00 = 1187.00

1088.00 + 66.00 = 1154.00 (50% extension)

1088.00 + 33.00 = 1121.00

 

Do I think we can reach the 1154.00 to 1156.00 price level??

 NO, which means it probably will.

 

2 things will happen

we fail to reach the previous high and sell off

or

we blow through the 50% retracement at 1121.00

and spike up to 1154.00 to 1156.00

 

Never have I ever seen the EURO reverse the trend and the S.P.’s not follow suit within a reasonable amount of time.

 

Conclusions:

 

A close above 1113.00 is mandatory in order to continue up.

 

1133.00 to 1172.75 we enter the red zone, the red zone is a potential trend reversal zone.

As I have written hundreds of times and you're probably tired of this.

The move up to 1586.75 from 767.25 (3/2001 to 10/2007)

Was based on this Key Yearly C/T (from 1999)

Pointing Down

Equalizer: 1132.00

Up Price Target: 1589.75 (we reached 1586.75)

Down Price Target: 553.00 (we reached 665.75)

Failure to reach the up price target at 1589.75

Creates a new RCT, never the less the immediate target upon the failure is the equalizer at 1132.00. At 1132.00 we confirmed the development of the new RCT and in addition traded below 1132.00, therefore the down price target became 553.00, we failed to reach 553.00, thereby 1132.00 became the next immediate up price target.

 

The above mentioned RCT we developed on 9/15/08 crashed us down to the patterns down price target at 671.00. This RCT (since 3/14/04) was the strongest RCT in terms of magnetic force. Therefore the attraction back up in the magnetic field of the pattern is mathematically obvious and it’s inner forces shall determine the next major leg of the market (17 to 30 months) ..the first outer wall (the thickness or width of the wall) of the MAGNET is at 1133.00 to 1152.75.  1138.75 is the black hole (energy) the second wall begins at 1172.75 and its inner structure is quite complicated mathematically. The nucleus of the magnet (RCT pattern) is at 1212.25.

Once we collide with the outer wall calculate the inner wave structure (price movement) within the first inner wall are we able to pre-determine the immediate linear projection and its vector apex.

 

HAVE A NICE WEEKEND

 

Master Che

 

masterchetrading@gmail.com