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, April 11, 2014

S&P 500 - confirmed double bottom sell signal

 

It's been a while, but we have a confirmed 'double bottom sell signal' on this SPX 10x3 H/L chart, confirmed by todays opening. SPX remains some way above its long term (dark blue) bullish support line and I have added an intermediate support line also in blue. Target given by the column of 5 '0's from the peak is 1,740.

QE has wrecked havoc on all kinds of chart analysis and P&F has not been immune - lets see how this plays out. There are still plenty of targets to the upside still in play but for now the bears have the ball.
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