I commented last Friday how the indicators were getting ‘wound up‘, with a potential to ‘sling-shot’ higher. The key was being able to take out the net-line buy level at 688.75 on the 135 minute chart, as I indicated in yesterday’s commentary, and that occurred this morning, and then some. In fact, we’ve now taken out a net-line buy on the daily chart (a 711.75), and prices are already at the channel tops on the 60 and 135 minute time frames. Let’s set our sights high with a target of the upper channel on the daily chart (now 824, though falling.)
For supporting evidence we have the tricks index which has generated multiple buys in the past two weeks. More importantly is the solunar model, shown here without the tidal dates. The first quarter extremes on the model for 2009 are January 2 and March 6. Right now, the extremes in the Dow are January 2 and March 9. The model says yesterday’s low will hold for a few months (until June.)
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2 responses so far ↓
1 bob5e // Mar 11, 2009 at 1:35 am
Why do I keep thinking this rally is a head-fake and there is one more drop in store? Daily DMX also has me concerned . . still dropping with no divergence.
Also on the Solunar . . could the March 27 actually be a retest or a new final low (638)? Don’t think the dead cat is quite ready yet . .
2 chester // Mar 11, 2009 at 8:30 am
Chris – You mentioned that the model is saying that recent LOW will hold for a few months ( until June ). Does that mean the next LOW will possibly be in June because the next HIGH looks to be May 15th area by the chart. hopefully you’ll clarify your thoughts.
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