- WE'RE JUST RANDOM SPECKS OF DUST IN A TORNADO TO THE MARKETS .......
- CHARTISTS MUST PUT ALL BIAS ASIDE AND LET THE CHARTS DO THE TALKING OR WE'LL SEE ONLY WHAT WE WANT TO SEE
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Tuesday, 13 May 2014

Apocalypse Postponed

RUT broke up from the falling channel yesterday, and triggered the smaller double-bottom  with a target in the 1150 area. A sustained break over 1160 would trigger the larger double-bottom with a target in the 1225 area. We could see a deep AM low today to retest broken channel resistance. RUT 60min chart:
With the break up on RUT my attention on NDX returns to the broken megaphone target at 3717 and the IHS targeting the 3760 area. First today though we need to see the strong break back over 3613 that we didn't see yesterday. NDX 60min chart:
After another look at the SPX chart I have belatedly seen the large rising wedge there coming off the 1849 high and subsequent 1737 low. The next obvious upside target is therefore rising wedge resistance in the 1920, and there should be decent resistance there. It is important for these bull scenarios that the opening gap yesterday morning on SPX is not filled, as it was a breakaway gap which should not be filled until the breakaway move is finished. SPX 60min chart:
On the SPX daily chart the upper band is now at 1901. The weekly upper band is now at 1907 and both could rise as high as 1915-20 by the end of this week. That rising wedge target on SPX would just be reachable on a strong move this week. SPX daily chart:
We may see RUT retest broken channel resistance this morning, in which case we could see a deep AM low which should not fill yesterday morning's opening gap on SPX. That was a gap over the 50 hour MA, now key support at 1880. As long as that gap is not filled, my next upside target is SPX rising wedge resistance in the 1920 area (and rising), and I am dusting off the wedge target at 1965 that I gave end the end of June last year as a possible final target for this move.

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