ＳＰＸ ファンライン☆

[月とスッポンさん]

 

ファンラインについてはまだ勉強不足なので、コピーしたものだけ載せておきます☆

Fan Lines

As we rise towards another high in the indexes (DJIA already hit one), I'm struck by the creation of these fan lines clearly visible on the SPX. Usually fan lines (according to Edwards and Magee) are one of many possible reversal signs on an Intermediate term timeframe. The thought is, on the break of the third fan line, then you have confirmation of the correction unfolding. Here's the chart.

We'll have to wait to see if this third line is broken. I do suspect it will happen but this market has shown that going down and staying down is not a direction it tends to move.

Last night, Asia traded higher but closed off its highs. Europe is flat. After these strong advances, a pause would make sense. After all, this is the fifth time we have had a V shaped move higher after it appeared we were left for dead with this one being the strongest yet.

The dollar is a tad stronger, futures are down a few points, and commodities flat. Look for some sort of pull back/consolidation today. Note we are approaching overbought once more and how we handle that downward pressure will define how we end the year probably.