doji

Fake correction followed by a fake rally?

Posted by Investing Freak on August 27, 2009
Market Analysis / 1 Comment

The past 4 days The S&P and many other markets have traded within a very narrow range.
There have been doji candles galore. trendlines, averages, bullishness ratios and even the Elliot Wave expert said rally is ending and a correction will come sooner or later that will surpass the march low.

I have taken the liberty to put up a few $SPX charts with possible short term outcomes.

The big picture is in the first image (Click to Enlarge)
I am looking for the S&P to go to 1010 to lure in bears and then bounce off the trendline and make a higher high to fool the  bulls and shake the bears. Then lastly (not in these pictures) I am looking at 950’s as a conservative bet.

spx-aug27-09Here is a closer look short term view.  Upside target is 1040-1050.
spx-aug27-09-closeI hope you enjoy my opinion and feel free to comment your own.
-K

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