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, August 23, 2011

SPX 10x3 - forming triangle

There is a triangle forming on this 10x3 HL PF - it needs 5 columns to complete. There is an active target in place of 1,040, given by the first column of 0's from the top. We now have two un-activated targets - one to the upside of 1,380, which would get the SPX to a new high and one to the downside of 990, which would get SPX close to a previous support level.

To activate the target to the upside, the index needs to pass through 1,210. To activate 990, the index needs to reverse and move through 1,120 and ideally 1,110.

The index pushed through the long term blue bullish support line at 1,170 and is currently in a state of bearish resistance, as denoted by the red line. Unfortunately I won't be around to see how this resolves, i'm off on holiday after tomorrow!
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