Thursday, October 27, 2011

Potential Price and Time Reversal Zone

Blogger is giving me an error in trying to post a couple images tonight. I will put them up when I can. One is a concept I haven't ever really covered in this blog before in any detail, but there are a couple very nice examples of right now on the charts. Basically the high today was pinpointed as the possible rally high by the prior gap up on Oct 10th. So the 1290 is a potential reversal zone.

Also there is a low-low = high-high time relationship possibly in play right now where the time between the Aug 9th and Oct 4th low is equal to the time between the Aug 31st high and the current high. There is one day difference as of today, but at times this relationship will occur before a major trend change/continuation.

While the S&P seems like it will probably be at around 50 billion by late next week, there is the possibility that it is climaxing on a counter trend rally right in this area.

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