ChartsEdge comment for 4/20

Always happens when one is away from the trading turret for a few days, eh?! Something Mike Korell posted during the trading day on Tuesday, 4/20, at his page, http://www.chartsedge.com/wp/

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What to expect

Posted: April 20th, 2010 | Author: Mike Korell | Filed under: One-Day Market Map | No Comments »

This week began at SPX 1192. That is the pivot point for the BP chart. What I mean by that is that if the market extends above the projected numbers by some percentage, expect the market to match that percentage relative to the forecast chart to the downside. This week is an interesting case in that the forecasted close on Friday is approximately the same as the open on Monday. The result is that describes exactly what I think will happen with the market extending about 1/2% higher and lower than shown on the BetaP chart.

To expand on this, the BetaP chart shows a close at about 1192 today. That is the pivot point. As a result, that is exactly where I expect the market to close today. If it fails to drop to that level, expect the market to correct at the open tomorrow. If the market extends lower than 1192 at the close today, look for a corresponding move higher at the open tomorrow.