Reactive1's Account Talk

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Sorry, didn't post right, but just looking at support levels of the Shanghai.

Again, time to be very careful. Previous posts from May 2008. Critical days ahead.




Reactive1 said:
We are again in dangerous territory as a technical matter relative to the Shanghai index, though just as before it does not NECESSARILY have to be so. It's information worth knowing. The quoted information is from March when the potential was in place for a dramatic drop, which did not occur. As I type this the index has dropped to 3406. Be very careful in the short term.
Click to expand...
 
A “Rising Wedge” has been forming since the March low. There is evidence that the “Rising Wedge” is ending in that the SPY is running into the gap that form on 10/6/08 and this area is provide resistance. another indicator on the chart above that show this market is pushed to extremes is the “Percent Volume indicator” which is also pushed to extremes and has stayed at extreme for the last month. Normally this indicator reaches extreme and forms a top (see previous tops chart with red arrows). A sell signal is triggered on the “Percent Volume” indicator when it passes down through the red uptrend line. The “Percent volume” indicator has not updated to today’s close as this report was written but it may have triggered a sell signal today. These sell signals in the past have worked well. A some point the March low will be tested and may be exceeded. Sentiment reached 91% bulls recently. The top in October 07 (the major top) sentiment came in at 88% bulls. The next leg down should last into November and may find support at the July low near 87 on the SPY and XLF may find support near 11. In early 2010 the SPX and XLF may test their March lows which is 67 and 6 respectfully.

http://www.decisionpoint.com/TAC/ORD.html
 
Reactive1 said:
A “Rising Wedge” has been forming since the March low. There is evidence that the “Rising Wedge” is ending in that the SPY is running into the gap that form on 10/6/08 and this area is provide resistance. another indicator on the chart above that show this market is pushed to extremes is the “Percent Volume indicator” which is also pushed to extremes and has stayed at extreme for the last month. Normally this indicator reaches extreme and forms a top (see previous tops chart with red arrows). A sell signal is triggered on the “Percent Volume” indicator when it passes down through the red uptrend line. The “Percent volume” indicator has not updated to today’s close as this report was written but it may have triggered a sell signal today. These sell signals in the past have worked well. A some point the March low will be tested and may be exceeded. Sentiment reached 91% bulls recently. The top in October 07 (the major top) sentiment came in at 88% bulls. The next leg down should last into November and may find support at the July low near 87 on the SPY and XLF may find support near 11. In early 2010 the SPX and XLF may test their March lows which is 67 and 6 respectfully.

http://www.decisionpoint.com/TAC/ORD.html
Click to expand...

Reactive: Thanks for the informative charts. I will have my finger on the button next week.
 
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