Nice set of markups from David Singer:

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click for ginormous chart

Category: Markets, Technical Analysis

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

12 Responses to “SPX Annotated”

  1. Chief Tomahawk says:

    Meanwhile Larry Kudlow spent most of the last hour (on CNBC) weeping for the dollar …

  2. chartist says:

    The 200 week moving average is again providing some overhead resistance.

  3. liviu says:

    awesome chart! looks so… vintage ;)

  4. rdhall3637 says:

    “The market will most certainly go up, unless it goes down.” That is what this type of chart is telling us. Way too much going on here to be able to make a clear cut decision. Bulls and bears can both use this chart to make a compelling case for buy and sell, on the same chart!!

    I prefer a must more clear cut method, just be 100% long or 100% short at all times. That’s what we all do anyway, right? When you sell a stock, you are basically betting on a down move, so why not go short right then??

    http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID3274981

  5. Bruman says:

    I can appreciate the thought that went into it… and I do think technical analysis can offer value… but honestly, the first thing I thought was “Where’s the Shire? Minas Tirtih? the gates of Mordor?”

  6. dss says:

    @Tomahawk,

    I can remember him saying that a cheaper dollar doesn’t matter because it helps our economy.

  7. ACS says:

    Bruman, I don’t know about the rest but Mordor is at 200 West Street New York, NY 10282

  8. philipat says:

    Maybe Kudlow just came back from Europe? Or Japan!

  9. jpmist says:

    I’m a bit stunned that Mr.Singer blithely discounted the Flash Crash of May 6th. If charts based on price and volume have any validity then it should be recognized that what happened May 6th was a severe aberration which distorted what followed both in price action and sentiment. My take is that May thru August were just meaningless noise.

    I ‘d love to see his take on the DXY or $USD chart. DXY and SPY have been a mirror image since the beginning of July.

  10. Efficientish says:

    This is a very pretty chart.

    My charts are ugly, but they look forward and not backward:

    http://efficientish.blogspot.com/2010/10/inverse-head-and-shoulders-update.html

  11. Per the “inverse head and shoulders” forming from late-May to late-August… where is breakout volume upon neckline penetration? And where is accumulation being demonstrated in the right shoulder’s formation (relative to the head)? These are requisite to the pattern according to Edwards and Magee.

    That’s no inverse head and shoulders. Rather, there are five waves down from April top and three waves up from late-June correcting these. Seen as such, April top is “important” (as likewise indicated on the chart). But critical. Hardly.

    The fact is stocks have been distributed from strong hands to weak for more than a decade and it appears the last of it is done. As such, collapse back to levels last seen in the 1987-1994 period (taking the lead from banks and financials) could commence at an moment (as long as April top remains intact).

  12. ben22 says:

    Singer,

    thanks man….still laughing about your good call on the IYR. Im’ with RiskAverse on this one, that inverse H&S while it “looks” like it is working, it’s really not the proper pattern as volume doesn’t confirm it in both spots that RAA mentions, that said, I can’t count five waves down off the april highs either (using e-wave) Neely has an interesting terminal C going on, seems like the best interpretation I’ve seen of the price action since the April highs.