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.
Tuesday, May 17, 2011
SPX target 1,250 activated BUT...
The bears have made some inroads in recent days BUT:
* there are two minor bullish support lines to push through,
* there is also an active target of 1,400 still in place
* and it can also be seen that since March there have been two previous occasions where the bears have pushed the market lower, only for the bulls to come back in and push the market higher (although the first one was the Fuskshima sell off/recovery).
Note also that the S&P did pull back from the intra day low to close at 1,329. If it can get back up to 1,335 tomorrow, this column of 0's will reverse in to a new column of X's (as the 3 box (5x3) 15 point revesal will be satisfied).
We are at a bit of an impasse here - the downside target is active but its not compelling.