Price and Time Confluence??
January 17, 2010 11:49 AM

Jan. 17, 2010

Precise Price and Time-Cycle Confluences are very rare. When they do occur, they tend to influence the outcome very strongly. Here is a scenario in S&P Index where price and time-cycles may be in line for confluence.

$SPX made a low of 666.79 on 03/06/09 (influenced by Number 3? :) and rallied pretty much in a steep run up. Every analyst ever said this is it, its going to turn and fall below March lows’ was thrashed and proven wrong. A brief retracement in June-July ’09 to 200-SMA followed by much publicized H&S pattern (failure) produced another strong rally. This ABC bullish is NOT a Perfect ABC. C retracement is very shallow. Neverthless, it is now coinciding with its first Time-Influenced Cycle (twice the size) with its Price Target. 200% of Time Cycle is on Jan. 19, 2010 and 100% of AB Target is set 1158.78. Near confluence?

Historically these confluences influenced some retracement. Last week’s trading has shown some signs of pullback. Fridays’ Options expiration, holiday weekend may have triggered sell-off. I would be interested in some pullback to test 62% level at least (1048) for another trend up. But I could be wrong like most analysts last year :)

SPX_PriceTimeConfluence

Checkout SuperBars… They never strongly showed RED bars since July 2010..


ABC Bullish

Comments

2 Responses to “Price and Time Confluence??”

  1. Tonloc on January 18th, 2010 5:43 pm

    good stuff. I happen to agree and think the targets are a little higher. As a long time bear though I am a little uncomfortable as a bull now – and using myself as a tell now that I am bullish we should drop :)

  2. MarketFeel on January 18th, 2010 11:43 pm

    good stuff. I happen to agree and think the targets are a little higher. As a long time bear though I am a little uncomfortable as a bull now – and using myself as a tell now that I am bullish we should drop :)