Gotta make this quick, it's past my bedtime again 
First up AGG Daily chart (who cares.) Prices pushed down further than I expected, check out 350Z's thread for the real story. But in the end AGG managed to close flat for the day. Is the short-term bottom in? I want to say yes, but "as always" we need to see confirmation.
On the S&P 500 daily chart I'm going to introduce to you 2 new tools. First we have the Fibonacci Extension tool, it projects future levels based on the previous wave. What this tool tells you is that this current wave met the tools expectations 3 weeks ago when the current wave penetrated the 100% Fibonacci level. Since that time we've been trading sideways.
The second tool is an indicator called the Key Reversal Up/down. The red signals are triggered when the current candle had a higher high, but closed below the previous candle. Likewise, the green signals are triggered when the current candle puts in a lower low but closes above the previous candle. Most folks call these outside days and what key reversals can do is tell you price direction is going to change. As you can see, you can get false signals, but it does serve as a good reminder when price changes direction. Oh by the way, Thursday we put in a Key Reversal Down...
The Dow Jones Transportation Average has been pissing me off, so I had to step back and simplify the chart in order to better understand it. Here is a weekly chart with the green March trendline. In Yellow I've drawn in a right angled broadening wedge. This pattern has a typical 50/50 chance of a breakout, but I'm upping it to 52% chance so long as it stays above the March trendline. We'll need a significant rise in volume to correspond with the breakout.
The Dollar's daily chart has a descending upside bias. Meaning it's bouncing within the long-term descending channel and wedging within it. The descending wedge has an upside bias, but in the end I don't expect a breakout above the wedge to breakout above the channel.
If you're invested and we see a big down day tomorrow, try not to panic. Panic is what causes us to sell at the bottom. I expect Friday to be red but close above 1080. If this is the case, I expect Monday to be the beginning of the breakout. I may IFT tomorrow, take care... Jason
First up AGG Daily chart (who cares.) Prices pushed down further than I expected, check out 350Z's thread for the real story. But in the end AGG managed to close flat for the day. Is the short-term bottom in? I want to say yes, but "as always" we need to see confirmation.
On the S&P 500 daily chart I'm going to introduce to you 2 new tools. First we have the Fibonacci Extension tool, it projects future levels based on the previous wave. What this tool tells you is that this current wave met the tools expectations 3 weeks ago when the current wave penetrated the 100% Fibonacci level. Since that time we've been trading sideways.
The second tool is an indicator called the Key Reversal Up/down. The red signals are triggered when the current candle had a higher high, but closed below the previous candle. Likewise, the green signals are triggered when the current candle puts in a lower low but closes above the previous candle. Most folks call these outside days and what key reversals can do is tell you price direction is going to change. As you can see, you can get false signals, but it does serve as a good reminder when price changes direction. Oh by the way, Thursday we put in a Key Reversal Down...
The Dow Jones Transportation Average has been pissing me off, so I had to step back and simplify the chart in order to better understand it. Here is a weekly chart with the green March trendline. In Yellow I've drawn in a right angled broadening wedge. This pattern has a typical 50/50 chance of a breakout, but I'm upping it to 52% chance so long as it stays above the March trendline. We'll need a significant rise in volume to correspond with the breakout.
The Dollar's daily chart has a descending upside bias. Meaning it's bouncing within the long-term descending channel and wedging within it. The descending wedge has an upside bias, but in the end I don't expect a breakout above the wedge to breakout above the channel.
If you're invested and we see a big down day tomorrow, try not to panic. Panic is what causes us to sell at the bottom. I expect Friday to be red but close above 1080. If this is the case, I expect Monday to be the beginning of the breakout. I may IFT tomorrow, take care... Jason
Good analysis!
