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.

Monday, September 20, 2010

SPX: possible inverse head and shoulders?

One potential scenario. Neckline at 1,130, recent low (head) at 1,010, upside to c 1,250, giving something closer to a double top? Momentum indicators may suggest overbought but some better than expected economic data this week and comforting words by the Fed might move it higher.

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