I mentioned this several times
1136.25 turns on the red light alert for a potential reversal
It’s a crash pattern from 9/18/08
The lower wall of the pattern is at 1136.25
It’s an old pattern from 2008 and due to the contract rollovers numbers vary; 1136.25 is on the weekly continuous charts
On the weekly nearest charts the lower wall is at 1133.00
Yesterday we reached 1133.00
I’m expecting a decline down to 1100.00 to 1100.50
The question at hand is
Do we pop up one more time reaching 1134.25 to 1134.75 and then head down as such, or do we head down from current levels without the pop.
I’m not expecting a decline below 1100.00, but one thing I’ve learned from experience is expect the unexpected.
Could this market tank, absolutely, the market is not over bought but rather under sold, meaning we’re over due for a correction.
In addition we reached 1133.00 (red alert level), therefore all potential declines must be viewed as a potential trend reversal.
In the event we do decline from current levels
Then 1102.75 becomes a crucial level.
A lot of talk recently about market (government) manipulation
Charles Biderman came out of the closet (TrimTabs) insinuating that the Government bought up the market.
TrimTabs is one of the best research firms tracking the money flow, they are partially owned by Goldman Sachs, Biderman is biting the hand that fed him.
It appears he has decided to return from the land of Oz…
Just look at the ADP and non farm estimates and you’ll understand. Just so you know, all economic news (monthly data) are not hard facts, but rather estimates.
(most often phone call estimates not hard data.)
But never the less I ONLY concentrate on my numbers and what they indicate.
We have this pattern since 9/09
Clearly Pointing Up
Up Price Target: 1166.25 (1140.25 halfway)
Down Price Target: 1010.25
Down Extension: 991.75
Until we either take out 1088.50 or reach 1140.25/1166.25
We MUST respect the upside.
There are no fundamentals to trade, the economic news is not creditable.