Exposing Ideas to the Envelope of Serendipity

Contact moo at: bluechipbulldog@gmail.com

Thursday, July 30, 2009

$SPX and 50% Retracement Target : Keep It Simple Sam

Using similar methodology to project the daily /ES range, I determined the Weekly 50% $SPX retracement from the July 2007 high to the March low. It is roughly valued at 1120.

I then applied a simple Regression +/- 2 sigma Channel from the March low to today. This combined information tells me that a top should be in place between early September and the end of October 2009 indicated by the orange flag poles.

It will be interesting to see what path we take. The "high" 2 sigma channel or the "low'" 2 sigma channel will determine how quickly we get to the goal of 1120.

I will abandon this projection if the lower channel were to be violated prior to September.

Weekly Breath information will also be my guide to confirming or rejecting this projection.

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