Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

TAM's Morning Cup of Jo: July 13, 2011

|Includes: SPDR S&P 500 Trust ETF (SPY)

“No duty is more urgent than that of returning thanks.”

                                                               – St. Ambrose
There are multiple reasons why I love this career and this is one; Minyanville and our tenacious readers!!!! Knowing if we can help just one person by sharing our experience is the ultimate gratitude. One of our dedicated readers, we’ll call Chicago Jim, took yesterday’s ‘Jo’ and went to town – per se. We’ve spent the last month touching upon and covering Andrew’s Pitchfork, its difficulty in accurately finding them and their tremendous technical benefits.
Here’s yesterday’s reply…
“KAT, I appreciate this morning’s fishing challenge and wanted to inform you of what I’ve found since getting an appreciation for this technical pattern/indicator. My analysis has lead me to find a larger Pitchfork on the SPX and wanted to know if my analysis is accurate. Along with the chart I’ve researched some additional analysis which states after completing two cycles within one portion of the fork it is highly – as you say – probable a reversal is at hand. Can you comment?”
SPX Daily

Chi-town Jim: First, great job on the analysis and yes it is a proper pitchfork – massive (almost 2-years), but correct. As for the second part of the analysis, this is a common observation in regard to the amount of cycles prior to breaking center tine. However, in my 20-years of being a technician this has never been, in my humble opinion, proven when ascertaining the probabilities. It has always been my tendency to allow the market to tell me what to do rather than guess. Meaning, if the SPX does happen to break down through the center tine, be prepared with a plan of action. Great Analysis and Great Questions.
This will assuredly help our other readers.
As always, I hope this helps! – Until Next Time.