Last night the futures were down, so I cracked open a 15 minute chart and looked to see where the downside action could go. In yellow, I drew in what I thought to be two deformed Head & Shoulders whose angles of descent were exactly the same.
My theory was that the bigger H&S would follow the same path as its little brother and sure enough, (1 second gloat :cheesy
the pattern met my expectations.
For tomorrow's action I'm keeping in mind the last time the 15 minute tried to take over the 200 MA (red circle) it took 2 hours to punch through. This morning, we opened & gapped under the 200 MA, so I'm wondering will it stiff-arm us again? We did close above the 20 MA for the first time in over a day, so I guess there might be a little bullish action left in there, but it sure doesn't seem like much.
<O
In reality, I don’t know how this chart will play out, but If you’re a Bull, I would be surprised if we close above 899, based on resistance at the gap and the 200 MA. So maybe 10 points of upside action can be expected.
<O<O
Now if you’re Bearish, then you might like this 60 minute chart better. We have cracked, and twice broken through the rising channel. I really don’t like that rising channel anymore because she has broken my heart, so I’m moving on to a new girlfriend. Her name is “Death by a thousand cuts Declining Channel Charlie” or DBATCDCC for short. For the downside action, she could give us an 18 point close at 870 on the button. Now I also want to point out that SWEET bottom bump off the 200 MA at 879! :nuts:
<O
There is only one thing I want to point out on the Daily chart. THIS IS THE FIRST CLOSE BELOW THE 20 MA SINCE THE 666 TREND CHANGE!<O 
<O
Lastly, please remember to keep SqualeBear and his Mama Bear in your prayers.
My theory was that the bigger H&S would follow the same path as its little brother and sure enough, (1 second gloat :cheesy
the pattern met my expectations. For tomorrow's action I'm keeping in mind the last time the 15 minute tried to take over the 200 MA (red circle) it took 2 hours to punch through. This morning, we opened & gapped under the 200 MA, so I'm wondering will it stiff-arm us again? We did close above the 20 MA for the first time in over a day, so I guess there might be a little bullish action left in there, but it sure doesn't seem like much.
<O
In reality, I don’t know how this chart will play out, but If you’re a Bull, I would be surprised if we close above 899, based on resistance at the gap and the 200 MA. So maybe 10 points of upside action can be expected.
<O
<ONow if you’re Bearish, then you might like this 60 minute chart better. We have cracked, and twice broken through the rising channel. I really don’t like that rising channel anymore because she has broken my heart, so I’m moving on to a new girlfriend. Her name is “Death by a thousand cuts Declining Channel Charlie” or DBATCDCC for short. For the downside action, she could give us an 18 point close at 870 on the button. Now I also want to point out that SWEET bottom bump off the 200 MA at 879! :nuts:
<O
There is only one thing I want to point out on the Daily chart. THIS IS THE FIRST CLOSE BELOW THE 20 MA SINCE THE 666 TREND CHANGE!<O
<O
Lastly, please remember to keep SqualeBear and his Mama Bear in your prayers.
