ChartsEdge (US equities) map for 9/24

ChartsEdge Market Map for Sep24
BP map (see my own notes below)
Posted: September 24th, 2009 |
Author: Mike Korell |
Filed under: One-Day Market Map | »

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Thanks again, Mike and ChartsEdge! This is their "BP map". Their "Pattern Recognition map" is also available at the ChartsEdge subscriber site (check the link in their weekend email if you're a subscriber).

Welcome to the day after Fed day! As I write this, the futures look consistent with testing around those 1050-1057 levels. I'm thinking the "wave 4" the SPX is working out, per Tony Caldaro's OEW counting, is likely to remain above 1039.47 and probably get support in this 1050 area, though that 1041 level is available if needed, below. I gave the reason for my thought on this, in the post here last night.

How 'bout that oil price?! Remember when I posted recently about it going into a wave 2 down? Looks like that's proving right, so use the "Oil" label to refer to that, including target levels. Looks like Gasoline is traveling the same path. (Don't know if it's the same for coal - KOL -but be careful in case it is.). There's news about how shale reserves of natural gas in the US alone will greatly add to NG reserves, and in some applications including electricity generation, natural gas can displace at least some coal usage, depending on the price relationships at the margin. Still - if this really is just a wave 2 pullback, then a wave 3 up will be a great ride in oil and gas (maybe coal, if the pattern fits). We just don't want to be at risk in case the pattern turns more bearish, so no harm in stopping out longs and looking for a good reentry point at lower prices.

Gold continues an interesting discussion especially when charted in currencies other than the dollar. We'll continue to eye the dollar, and don't forget Treasury bonds which should have some upside ahead. So - remember to "measure twice, cut once" while honoring stops as well as letting working trades run to at least initial projections before tightening stops and/or TMAR ... and happy market navigating!