US Composite IndexShort
Week 10. Ok, take a breath and read on.
Updated
So, here we are for another crazy chart.
Week 10, next week is under the spotlight.
All this mess you see in the chart is to say that next week Nasdaq Comp will hit point labelled "I" first, then point "L".
Of course, this is only a mere idea. The market may unfold in a totally different way.
The basic underlying idea is that we are in a bear market. Without a bit of foundamental analysis,
drawing trendlines on a chart is like reading coffe cups bottoms LOL, a total waste of time.
So, far this chart says nothing. It looks only like a mess (which may likely be, LOL)
It needs explanations, which I'll give later today.
Please note that this idea doesn't really contradict my previous ideas.
Markets proceed, and so do my ideas.
Said that, have a nice day.
Week 10, next week is under the spotlight.
All this mess you see in the chart is to say that next week Nasdaq Comp will hit point labelled "I" first, then point "L".
Of course, this is only a mere idea. The market may unfold in a totally different way.
The basic underlying idea is that we are in a bear market. Without a bit of foundamental analysis,
drawing trendlines on a chart is like reading coffe cups bottoms LOL, a total waste of time.
So, far this chart says nothing. It looks only like a mess (which may likely be, LOL)
It needs explanations, which I'll give later today.
Please note that this idea doesn't really contradict my previous ideas.
Markets proceed, and so do my ideas.
Said that, have a nice day.
Trade active
Ok, so, some exlanations....It all starts from points C, C1, C2. They're all whay I call "bootstrap" opens, because the market opened sharply lower, just to recover in an hour or so.
From C C1 and C2 originates trendlines M1 and M2.
If you expand yesterday chart 02 March, you see that IXIC followed M1 quite nicely.
So, the idea is that Monday 05 we continue this bounce from H to reach I.
There are 3 resistances in I. First there is trendline M2, already mentioned.
Then there is trenline N, which has the same slope as M1, but negative.
3rd resistance arises from a head shoulder where head is G and left shoulder is F and right shoulder is I.
Note that we are at the same level as A, which in my idea is the starting point of this figure and likely of the bear market.
So, what happends after I ? I think the market will thrown down to L, which is the target of this scenario.
Why L ?
Note that price distance G-H is the same as I-L. Timings are compatible. That would be a "zap" figure, that is big move down, bounce up, second big move down, so and down-up-down pattern.
Remarkably, point L is at half price distance of points E-I (or E-A). Point E doesn't need comments as it is to-date year bottom.
More remarkably, is timing distance, A-E and E-L is almost the same.
Another reinforcement of the target L comes from P, which shows that A-D-L are aligned. D is the bounce end of the early February crash.
Parallel to P is T, thus reinforcing the idea. T joins B-F and yesterday high. Likely the market wanted to show the existance of trendline T, hence of trendline P, which lead to the target L.
I'm not disclosing here trendlines Q, R, S althought they are long term lines and of greater importance.
What after L ? Too early now, but if L is reached, then revisting the bottom is not unlikely.
This scenario likely fails if I is reached, but market grows above F.
A variation may be that the falling market will resume as soon as Monday.
But after italian elections, a choppy/bounce day is likely to develop.
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