Thursday, January 24, 2013

Charts 01-24

That was exciting today when we touched the orange line and pulled back, UVXY got all hot and bothered, but it didn't stick.  The 2007 top had a 30-handle reaction off 1576.  So we still have plenty of room left in the wave count and the monthly charts to put in a higher high at the end of February.  I think we have begun a wave 4 that will rachet down to 1451 the way we came up, in little fits and starts.

My old TickerForum friend Lunatic_Fringe always liked expanding ascending wedge shapes at major tops, so I'll propose one here.  This one could pop as high as 1528, where we really have the last trendline from these massive bearish wedges we have been building.

From a top at 1528, the .382 retrace to 666 is 1208, which may be a good first target for a wave 1 on the way down.  I'll poke around with the 1528 area to see if there are any fib extension levels from other waves that land near it.

[Actually, the 1.236 fib extension of the move from 1398 to 1502 (assuming it holds as a swing high) is 1526.5.]

SPX 01-24
SPX 4Y

1 comment:

Christian Gustafson said...

Comment trolls are welcome to visit the forums hosted over at Daneric's Elliott Waves.

Always a good time over there.