Keene Little : 6/18/2007 12:01:10 AM
Friday's consolidation makes it look like the market is going to press higher. But first it looks like we could see some additional consolidation, perhaps in a little sideways triangle as depicted on this SPX 60-min chart: Link
If price were to consolidate in a flat pattern then the 5th wave in the move up from June 7th would be equal to the 1st wave near 1560.
The daily chart shows a Fib projection for the 5th and 1st waves in the move up from March would be equal at 1561.12. Link
Therefore that would be a level to watch if we get there. So the first trade looks to be a long play so that's what I'll be watching to set up on Monday or Tuesday.
The DOW's 60-min chart shows the possibility for the same kind of setup if it pulls back to 13600 and then heads up for its Fib projection at 12823 later in the week: Link
This matches the Fib projection on the daily chart for the 1st and 5th waves to achieve equality: Link
NDX gives me the impression it could continue a little higher before it starts its own larger sideways/down correction (which the others might also do) and then head higher again. 60-min: Link
Its daily chart shows a potential expanding triangle (megaphone) which is typically an ending pattern. The top of the pattern hits a Fib projection for equality between the 1st and 5th waves at 1972.67 around Tuesday, June 26. Link
Keene Little : 6/17/2007 11:25:05 PM
Monday's pivot tables: Link
OI Technical Staff : 6/17/2007 9:59:59 PM
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