Look: I am eager to learn stuff I don't know--which requires actively courting and posting smart disagreement.

But as you will understand, I don't like to post things that mischaracterize and are aimed to mislead.

-- Brad Delong

Copyright Notice

Everything that appears on this blog is the copyrighted property of somebody. Often, but not always, that somebody is me. For things that are not mine, I either have obtained permission, or claim fair use. Feel free to quote me, but attribute, please. My photos and poetry are dear to my heart, and may not be used without permission. Ditto, my other intellectual property, such as charts and graphs. I'm probably willing to share. Let's talk. Violators will be damned for all eternity to the circle of hell populated by Rosanne Barr, Mrs Miller [look her up], and trombonists who are unable play in tune. You cannot possibly imagine the agony. If you have a question, email me: jazzbumpa@gmail.com. I'll answer when I feel like it. Cheers!

Tuesday, August 30, 2011

Tuesay Market Action

The SP500 index was up today, but not a lot.  It mostly meandered throughout the day, breaking out of the low side of a two-day trading channel.  The action for a couple of weeks now has been within boundaries defined by the 8/05 high of 1218.11, and the 8/09 low of 1101.54.  Today's high sneaked fractionally higher between 3:36 and 3:51, topping at 1220.10 before sliding back to close at 1212.92.

In the most recent several days, we've seen a jump up followed by leveling - which looks rather familiar.  

FWIW, I've suggested support/resistance bands in the area of roughly 1200 to 1210-ish a few times already, and just for kicks drew a curve along or near the peaks (blue.).  Elliott wavers who actually know what they're talking about are calling the counter-current move from the 8/09 low a double zig-zag. (Figure 12 at the link.  You'll need to mentally invert the picture - it is illustrating a downward correction, while the current one is upward.)  This move should be getting close to completion, possibly near the 50% retracement I mentioned yesterday - unless it turns into a triple zig-zag, which is also possible.

Momentum peaked early yesterday morning and has been slumping since.  Could today's high have been a top?  Tune in tomorrow for more exciting action.

No comments: