Stock-Market-Observations

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• WAVE COUNTS & OTHER GOODIES

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MARKET MESSAGES

12/10/12 – MON

We have been in  a consolidation pattern or rolling top for several days.  It appears that we are in 3rd step up and we “should” better the prior high at 1425.  If this is a rolling top, the new high would be minimal.  See the dashed yellow lines for indications of a possible reversal point.  A strong thrust through this line would indicate a breakout and the likelihood that we have been in a consolidation since December 3rd.

The white trend lines show that we are still in an uptrend, but it’s hugging the bottom line closely.

The chart below is the 5 day EMA trading system (see MY CHARTS chart #30.4 and notes below this chart).  It’s a relatively good way to stay in the market for the broad moves.  The lower line indicates the amount above or below the yellow EMA line.  The upper yellow line is a 70 hour (10 day) EMA instead of the system’s indicated 5 day EMA (35 hour).  Although it doesn’t get you in or out as quickly, it does have fewer whiplashes.

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This entry was posted on December 10, 2012 at 12:40 PM and is filed under UPDATE. You can subscribe via RSS 2.0 feed to this post's comments. You can comment below, or link to this permanent URL from your own site.