Welcome to EV's point and figures. This blog is dedicated to the use of point and figure charts in technical analysis.

Although P&F first appeared in charts in the 1930's, it is an often overlooked techique for analysing stocks and charts. A poor relation compared to line and bar charts and their range of momentum indicators. Yet few charts provide a clearer picture of the daily battle between bulls and bears for market control.

Like most methods, it should not be used in isolation. It should form part of an analysts 'tool box' and be used with other techniques to help form an overall view.

The charts that appear on this blog and any accompanying comments are purely for information purposes only - my own personal take on where the prices may be heading. They do not constitute investment advice.

Thursday, July 8, 2010

SPX: Slow Stochastic suggest more upside

A slight departure from the P&F's which I must update soon. The pattern resonates with 2007 but the slow stochastic suggests this bounce may have a bit further to run. The Proquote charting tools aren't the best. I'm using a log scale here and 50/200 day EMA's. Note the much vaunted death cross hasn't quite happened on this one. Either way, i'd expect resistance up to 1,100, as some of the more recent dip buyers use this rise to cut losses or get out at breakeven.

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