Wednesday, January 28, 2015

Charts 01-28: Domed-top proposed

All sorts of ways to count this -- still could get that old triangle.  I still think the Yen has one more capitulation low to make above USDJPY 120.

Here's another variant, where we land on the 200 DMA on Friday.  The overall shape is a much sought-after domed-top, a head-and-shoulders top with a neckline at 1972.

SPX 01-28

The 5th wave would fail to make a new high on the SPX.


John said...

Simultaneous bubbles in US gov't long bonds and stocks. In a ZIRP time deposit environment. This is a very dangerous situation.

That chart looks a lot different than the last time rates were so low--looks a lot more choppy. Since it seems somewhat unlikely that the Japanese will bomb Pearl Harbor and the Germans will invade France, can we really see interest rates suppressed on the long end forever and what does a crash in bonds and stocks together mean to "capital?" LOL--echoes of 1931?

Phat Repat said...

I have short targets of 1964.17, 1950.96, and 1937.03/1936.85 (all clustered that were not hit during these intermediate downtrends). From past experience, sooner or later, these get hit.

christiangustafson said...

Yes, they will.

I'm interested in the lower SPX BB and the 200DMA providing support here, like, tomorrow.

Phat Repat said...

Right, and a slight overshoot to 1964.17 would be a nice way to cover one with the others to follow; subsequent a bounce.