heres an interesting little analysis. I have been bugged for a while that despite the price rise, that this last major leg up actually finished on about 9th may. That was when the rsi last peaked and the downtrend in the rsi began on spx. From then on the rally was essentially overextended. So I drew a line from the top of 9 may to the low of 16 aug, copied that line to the top of 8 aug, and bugger me! It was an exact fit with both the top of 8 aug and the current close on spx.
Unfortunately that line cut off the rally peak of 13-20 july. So, in the spirit of drawing a potential trading channel, I shifted the line out to where it touched the top on 19 july. Now that trading channel says that the top of the range tomorrow for spx is 1500.
The key to this sort of approach is the angle of the line. As far as i can see with naked eye, the angle is very close to 45% down.
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Last
8,630.3 |
Change
59.900(0.70%) |
Mkt cap ! n/a | |||
| Open | High | Low |
| 8,570.4 | 8,632.8 | 8,570.4 |
| XJO (ASX) Chart |