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.

Friday, March 11, 2011

SPX: triple bottom sell signals

Rather like the FTSE 100 index, we have not seen a triple bottom sell signal on the SPX for ages. In fact, I think this is the only one on these charts and the first reversal/sell signal since the summer of 2010, such has been the strength of the bulls in the intervening period (that and a sprinkle of QE2).

The 5x3 H/L chart shows previous support at 1,305 held twice but has now fallen to the bears. Target to the downside is 1,255 and is active.

On the 5x3 chart based on the closing level only, there are two targets in focus. One at 1,250 and the other at 1,280. Similar picture, the bulls held that 1,310 level twice, managing to fend off the bears but the bears have managed to push through this level.

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