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It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning. Henry Ford


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The idea that you know what is true is dangerous, for it keeps you imprisoned in the mind. It is when you do not know, that you are free to investigate. ~ Nisargadatta Maharaj

Friday, 4 March 2011

2 LH setup

We have 2 lower highs now at the 1333 level that represents Gann 100% resistance from the low.Interestingly the Dax has cracked below its equivalent level (7200 ) today.This has the potential to be a very bearish setup...watch the trendline closely !  This is Ron Walker's chart

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2 comments:

  1. Anonymous10 March 2011 at 22:21

    Today’s market decline broke through the lower range of the SPX 1303-1332 parameters we have been monitoring. The market even hit the SPX 1294 low posted a couple of weeks ago. OEW has confirmed a downtrend and the SPX 1344 high labeling has been upgraded to black for Major wave 1. With a confirmed Major wave 2 downtrend now underway we can now eliminate all alternate counts and concentrate on the market activity for this correction. The seven month uptrend, July10-Feb11, has ended.

    Counting from the SPX 1344 high we have labeled the SPX 1294 low as Intermediate wave A of an ABC correction. SPX 1332 has been labeled Intermediate wave B. Therefore Intermediate wave C should now be underway. When it ends Intermediate waves A, B and C will have completed Major wave 2. Since Int. A was a 50 point decline, 1344-1294, Int. C should be some fibonacci multiple of wave A starting from the B wave high of SPX 1332. There are three levels worth watching: SPX 1282 (c = a), 1252 (c = 1.62a) and 1202 (c = 2.62a). Also, the previous two Major wave corrections declined exactly 9.1%. This would suggest a Major 2 low around SPX 1222. When we compare these four price levels to our OEW pivots we find that SPX 1252 is in between two pivots (1240 and 1261), and SPX 1222 is exactly at a pivot. As for the other two, SPX 1282 and 1202, 1282 appears to be too short to end this correction, and 1202 is also in between two pivots, (1187 and 1222). Our preference would be for a Major wave 2 low around the OEW 1222 pivot, with the 1240 and 1261 pivots as additional possibilities. Short term support is at 1291 and then 1261, with resistance at 1303 and then 1313. Short term momentum finished oversold.

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  2. Anonymous10 March 2011 at 22:21

    thats me....matrix..!!!

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