
Sometimes we attempt to explain reality by using images and that makes reality even more confusing for some.
I am that unfortunate type, I need to see and when I see I see not what that is and not what I want to see, but really something else.
Am I making myself abundantly clear?
Today’s market action mixed with blog policing sprinkled with annoying headache translated for me into two words:
So, as a result, everything in this post can be fairly described by at least “Hallucinogenic “ part.
No need to reflect on Dali’s work, but you’d agree that the chart below is “Hallucinogenic “ – is not it?
No matter how Hallucinogenic this chart is – it tells a lot (keep in mind that the last change to that chart was made on July 9th – no changes since, not by my hand)
1. TDSequential Countdown Sell completed 2 weeks ago.
2. long term “blue channel” is in play and price action was not even strong enough to touch upper boundary of this channel
3. “White channel” (in place since Jul9th) – failed to contain he price
4. Fib Fan (not that I am a big fan) provided resistance – when that happens it really signifies weak price action.
5. Failed to stay above “50% D-Wave Down w4 weekly” retracement of w3
6. Failed to stay above 88 weeks MA
Not visible on this chart, but RSI failed, even at the highest price point to cross 60 level (so called “Bull Land”)
First “visual support” is 38.2% Fib 07 top-09 bottom, but I think it’ll go right through to prior TD Risk Level (yellow punctured line ) at 980 area.
There was one more failure – it you follow springheel_jack’s charts (and you should) – that diagonal trendline of his that just been retested and failed accidentally is a high level TD Demand Line and it was broken and “qualified” today.
If you have not had enough of “Hallucinogenic” yet – here is a rare video of Michael Olson (I have cleaner record and it is called “Hallucinogenic Toreador”
11/05/2009
Futures approx. BO
Daily Range Projection
Low
High
/ES
1044
1061.50
SPX
1037.90
1053.75
/NQ
1680
1706.50
NDX
1667.77
1691.15