The daily chart looks like a triangle and triangles are not normally the end of the move,which suggests more downside (ED's excepted)
However the weekly chart bears watching with regards to the Gann harmonics at 72 weeks,144 points.The square of 144 was used to succesfully call the high last year
The high was 309 so 154.5 is important support
Here is the square of 360 chart for AAPL.We reached the end of the square without hitting 720 and are below the red bull angle and the moving average and the important 7/8 line.We should have at least a decent correction now.There is negative divergence on the weekly macd although it has not crossed yet.The weekly chart has an evening star reversal pattern following last week's doji which I highlighted.It needs to be confirmed by a close below last week's low.
Notice how there are similar Gann price/time harmonics as with the BKX chart and the S&P
Watch next week to see if wedge support and the 34 dma can hold.Tuesday's black candle was a sell signal
in line with what was discussed in last weekends post, where I wrote
" Looks like an overthrow,the initial candle was a shooting star/inverted
hammer,then 4 NR candles (narrow range) then a doji. Needs a black
candle with a close below Thursdays low to suggest a reversal pattern.
As Jeff Cooper teaches,the 7th day is often a reversal."
So Tuesdays high is a reasonable invalidation point or stop-loss level for shorts
BKX ended the second square of 180,completing 360 degrees/18 point Gann harmonic with a 7 day blow-off rally and rapid retreat back below price resistance,leaving a Pinocchio bar,which is bearish price action
I lean to the view that a top may be in though .Maybe one of these 2 scenarios ? We need to keep an open mind and be patient.It could still rally and fulfil the criteria above,following such a correction
Looks like an overthrow,the initial candle was a shooting star/inverted hammer,then 4 NR candles (narrow range) then a doji. Needs a black candle with a close below Thursdays low to suggest a reversal pattern. As Jeff Cooper teaches,the 7th day is often a reversal.
The high was 72 td so 90 td is the next obvious td pivot. Could that be a low ? That would be Oct 4 which is also an important 1 year cycle date.Also possible we rally into that date (blowoff type move but that seems less likely given put/call ratio,Cobra's USHL5 chart etc)
Looking at this chart the obvious call would be that we are at the top of a trading range.We had a bearish inverted hammer on Friday so could see some profit-taking. The 200dma is flat. We are 90 td from the May low. Gold often turns on seasonal time dates (equinox today)
If we have a pullback and rally again then watch closely because the weekly chart shows this would be a 3rd attempt at 1800 resistance and Gann's rule is that 3rd attempts usually succeed
Dax with major Murrey Math lines and Gann angles.Waiting for the 2x1 to break seems like a good sell strategy
Next week should be interesting. The bulls are arguing that the dollar is still weak (thanks to Bernanke) so that its still risk on (Nouf is making this point quite strongly for example) Here is a Nzd chart from DarkestKnight to support this point
Against that the DJ Transports chart is suggesting serious weakness,and oil is sending negative signals.
I posted this chart a long time ago and haven't looked at it for a while.Approaching the end of the square with increased volatility.The key is to watch how it performs once the square ends...ie does the 50 level remain resistance or can we start a new bull cycle ? The volatility is showing that quite a battle is going on at this key juncture of price and time
Is the Dax wave count complete ? We pushed to 7480 today.To my mind anywhere near 7500 should be very strong resistance,if only for a pullback
I have marked Gann's seasonal turn dates (Equinox and solstice ) on the chart in red