Sunday, 23 September 2012

Spx - overthrow,7 day reversal pattern ?











Looks like an overthrow,the initial candle was a shooting star/inverted hammer,then 4 NR candles (narrow range) then a doji. Needs a black candle with a close below Thursdays low to suggest a reversal pattern. As Jeff Cooper teaches,the 7th day is often a reversal.
 The high was 72 td so 90 td is the next obvious td pivot. Could that be a low ? That would be Oct 4 which is  also an important 1 year cycle date.Also possible we rally into that date (blowoff type move but that seems less likely given put/call ratio,Cobra's USHL5 chart etc)

Cobra's USHL5 chart :

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