The S&P500 is lifting back to 6-days of supply that starts right here.
This is also the same size of rally that we had from the August low to the September high.
I had to scrunch the time down, but the price move is identical.
1960 is where 9-days of time = the maximum supply level
Just information for you.
Tim 3:55PM EST 10/21/2014
Comments
dionvuletich
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Yes..! I was looking at this yesterday, there is a harmonic 5.0 pattern right now formed since 14/04/2014 to present, the low at 16/10/2014 was a bullish shark pattern and now we have a reciprocal AB=CD shark pattern right now (which is exactly what you are saying) I am looking for sell signals...
kws0807
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Tim: Just curious as to why your 'Time at Price" only includes the days spent at that price during the recent swing down from the ATH? For example, the top box (of 3 days) contains many days at that price level during the second half of August.
Appreciate the clarification as I would not have identified the ~$1,960 level but rather something like the $1,980-$1,990 level. Thanks.
timwest
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I only count days in the current trend - and thanks for the question. Since the 9-days are at the 1960-1965 level and the market is below that mode (at the time of the the chart), then the market is telling you the price that is controlling the market. The end of the day on this chart, there will be 9-days at the 1935-1940 area, so that means the mode is below the current price, which makes the market stuck in a range between 1960-1965 upper end and 1940-1935 lower end. I'll update the chart so you can see.
The way I calculate trend is to only use the data FORWARD from the Trend Origination (in this case, the ATH on the chart at 2012+).
kws0807
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Very helpful explanation. Thank you for posting it.
timwest
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Chart
timwest
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Almost reached the RED ZONE
elcololp
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Are you going to short now?
dionvuletich
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That will be a nice short zone with a tight stop 1960ish
elcololp
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61% Fibonacci form high now? Nice moment to sell? what do you think?
timwest
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I'm wondering as well. A rally of that magnitude does take a few days to stall out and then turn down. I've been shorting on the bounce, but I'll take them back in by the end of Friday and try again next week if there isn't meaningful downside action by Friday's close.