This 10x3 closing chart goes back to 2007. I have circled the 5 strongest columns of 'up' X's since the March 2009 low. Stripping out short term noise as a 10x3 chart would, this shows periods where the market rose uninterruptedly before experiencing a three box reversal.We have had five columns where the index has risen by between 130 and 170 points before reversing to the downside, starting with that 15 box revesal from March 2009. What has been both notable (and impressive) about the most recent column is that at 17 boxes, it is the largest of the five - even stronger than the recovery off the 09 low. And impressive that it has taken place almost 2 years in to the market recovery.
The last two large columns of X's (15 boxes through to April 10) and 17 boxes (to Nov) have given activated targets to the upside of 1,500, bringing the possibility of an encounter with the 07 all time high. Remember, these targets are not always achieved but that is what the chart is currently saying! We may see a bit of resistance around the 1,270 level, a target given by a previous column of X's back in August 09! Useless for trading but quite handy for giving 'big picture' perspective.
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