Wednesday, 9 February 2011

SPX Daily Chart - 8 Feb 2011

5 comments:

Anonymous said...

So we are potentially about to trigger a DAILY 9-13-9 sell signal by Friday close.

We have already triggered a 9-13 WEEKLY combo sell signal in mid-January. We have 12 weeks in order to see the reaction and an upper risk level of 1324.3. We also have a concurrent WEEKLY 9 sell setup that completed last week, which would become active if 1324.3 is broken in a qualified manner.

We have a potential 9-13 MONTHLY combo sell signal that would trigger at the end of February if it closes above the high from December (1262).

Is that a correct summation of the current situation according to TD?

Thanks!
-Erik

Saxby Fox said...

I would say that yes, that is a fair summary of what sequential and combo are currently saying on those time frames.

Saxby

Anonymous said...

This gets even more interesting when you compare it to Jan'10 and Apr'10 corrections

Jan'10 had the following:

Daily 9 sell setup barely missed
Weekly 9 perfected sell setup
Weekly 9-13 combo sell signal
Monthly 9 sell setup

Apr'10 had the following:

Daily 9-13 combo sell signal
Weekly 9 perfected sell setup
Weekly 9-13-9 sell signal
Monthly 9 sell setup from January

Jan/Feb'11 has the potential:

Daily 9 sell setup
Daily 9-13-9 sell signal
Weekly 9-13 combo sell signal
Monthly 9-13 combo sell signal

Couple this with the fact that Jan'10 and Apr'10 topping formations started in OpEx week, and next week potentially becomes very interesting don't you think?

-Erik

Saxby Fox said...

Interesting indeed! Plus you can add in the fact that the other technicals I follow (RSI, Composite Index, Derivative Oscillator) are all showing potential exhaustion on the daily, weekly and monthly levels.

Now if I can only be patient.

Saxby

Anonymous said...

Patience is the most difficult part indeed. Add in tonight's Egypt escalation and we potentially have the sociopolitical reason we need to start a correction.

Also, I have several indicators I follow to include in the picture.

Confirmation of correction:
Gold
USD
Crude Oil
Copper & FCX
Dow Transports
Bombay
Shanghai
Hang Seng

Non-confirmation of correction so far:
10 Year
Russell 2000
Nasdaq
Dow Jones Industrials
Retail

These are fluid and can change on a daily basis of course.

Importantly, we also don't see headlines blaring that a correction is imminent (like we did in mid-Jan). I always feel more comfortable when it is not well-advertised or expected.

If a correction is coming, we should see either OpEx Tuesday or Friday be a huge down day, or both.

-Erik