ChartsEdge Pattern Recognition Chart for Oct27
Posted: October 27th, 2009 | Author: Mike Korell |
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Thanks once again, Mike and ChartsEdge!
Folks, after a large range day like yesterday, it isn't unusual to have a followthrough day that moves at least a bit further in the same direction. There are some indications of a cycle low on Wednesday. And Terry Laundry posted his update last night saying he expects the SPX to continue to his band midline before a swing-tradable rally (my interpretation) - right now that midline being at 1037, but I'm thinking if the market can delay a bit, maybe 1042 will be a workable goal by the time we get there. Especially since picking off an extreme is quite tricky in trading so one way is to reap most of a move, TMAR, then use the time to re-assess and plan and await the next trade entry, which may be some time (based on your trading timeframe and style). If we see the low of the move tomorrow, that should also be a good time to TMAR any November VIX calls to lock in profits that will vanish with a reaction rally later in the week (not "advice" but just pointing it out!).
We know that the area around 1050 is important and may be defended, hence choppy. Under yesterday's 1067, using our simple "string", has us thinking in terms of 1062, 1057, 1052, then eventually 1047, 1042, and maybe 1037.
The $XJY has been getting closer to likely support at 108, so (even as the euro and dollar index are under watch for a trend change) we'll need to see if the yen strengthens again for another wave up.
So as the CNBC pundits speak about how "we have to get the earnings up" and batter challenging questions at analysts who point out the bearish factors - let's tune out the noise, reflect on what we're seeing in the charts, and take this market as it comes. Careful out there as always (they won't always be as easy as yesterday with the map) - and, happy market navigating!
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