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Return of the 60 Minute Chart
February 25th, 2009 at 9:28pm · No Comments
I banished the 60-minute chart a few days ago for the crime of giving useless buy signals amidst a strong downtrend. The choppy action since spread those bullish indications to some of the longer-term charts, with the modified DMX divergence on the daily chart the most notable event. So now, after days of rallying and going nowhere, I’m bringing the 60 minute chart back from exile, just in case it yells “sell” tomorrow, we’d like to be nearby to hear it. The 60 minute chart has seen prices get to the top of the channel and there are unconfirmed potential divergences on both the tick cycle-trap and modified DMX. I’ll try to post if these events signal, but I have some late-morning appointments that will keep me away from the screens. Meanwhile, I pegged 778 as the key level that needed to be exceeded to get me serious about the bull case yesterday. As the 135 minute chart shows, that level wasn’t breached until the net-line had expired after 2PM, and even then it led to a quick reversal lower. Now there’s a sell net-line at 743.50 that’s active until 2PM tomorrow on the 135 minute chart. The bulls have not proved themselves worthy as yet, in my opinion. Note also where the lower channels are on all three charts – 60 at 726, 135 at 728 and daily at 732. Uhmm, we could go there quick.
Tags: General Market Commentary · S&P 500
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