fascinating chart-where to from here, page-7

Hi Pore

My comment on technicals re SDL today is what you would expect for a "breather" is taking place. Low volume, low daily range. Looks like a triangle or pennant forming which could break either way.

The trading pattern IMO is professionally and expertly driven and hard to read because of the shear firepower the insto has in taking this stoch wherever they want.

Observations:

1. distribution at .12
2. perhaps some accumulation at .115. Note yesterdays close at ,11 which was strange as buying support was there for .115. that drew out some sellers this morning who were mopped up.
3. Chi X mid point trading last few days is seeming to soak up a chunk of traffic.
4. SP being squeezed into a range where few want to buy .12 and few want to sell .115. optimistically you could say that the squeeze settles the market for the next leg up. Pessimistically you could think that it is a set up for instos who IMO ran the SP up to build demand for distribution.

Take your pick for the direction, this is pretty smart stuff and could go,either way.

By the way, one poster talked about prediction of prices re tech analysis. I would put it another way, TA is good at predicting support and resistance price points which act as magnets given investor sentiment and self fulfilling prophecy of expectation. it can be somewhat helpful re trend direction too.

When the price moves against fundamental preconceptions, the price is always right. By price, I mean the trend not break and shake short term trader insto strategies.