On Tuesday Nov 22 when the SPX looked much different than it does today this question and answer appears in the comment section of Chart Signals…
Hi Dave
Since the market has tested 1188+, should the year-end rally target be revised down from 1369?
Maggi
Since the market has tested 1188+, should the year-end rally target be revised down from 1369?
Maggi
Maggi,
No need to revise.
A breakout chart target is a chart target. Not all chart targets are reached and not all are achieved within the time frame estimated by the time of the prior pattern.
Interestingly enough the SPX moved 200 points from Oct 4 to Oct 27, so if a higher low is reached this week and a similar 200 point move occurs in December, the SPX 1,363 chart target is still achievable within the 10 week estimate.
As traders we should just trade the chart whatever it presents us whether chart targets are reached or not.
Dave
No need to revise.
A breakout chart target is a chart target. Not all chart targets are reached and not all are achieved within the time frame estimated by the time of the prior pattern.
Interestingly enough the SPX moved 200 points from Oct 4 to Oct 27, so if a higher low is reached this week and a similar 200 point move occurs in December, the SPX 1,363 chart target is still achievable within the 10 week estimate.
As traders we should just trade the chart whatever it presents us whether chart targets are reached or not.
Dave
Now I suspect that among the few people who take the time to read the comments section there may have been someone who thought, “now that’s absurd, Dave has lost it, there is no way the SPX can rise another 200 points and not only that can’t he see the market is going down?”
So here we are a week later and we see that the SPX did make a higher low last week and the SPX has risen 79 points in three days and its not even December yet.
How can Dave be so confident and say what at the moment seems so absurd and within a few days it makes perfectly good sense and is so realistic?
Real world experience viewing approximately 1.6 million charts over the past 20+ years so that he gets it. He actually gets it.
“Every day there are only Chart Signals. We either take them or we don’t.” Dave Johnson
You don’t know and I don’t know if the 1,363 SPX chart target will be achieved within the 10 weeks estimated by the channel pattern…but take a moment and state in the comment section at the bottom today’s post and let Chart Signals know if you think 1,363 which is now ONLY 125 points away is realistic within the remaining four weeks. Thank you!
I would really like to know what you think! Post your comment Now!
.
Dave will be on TastyTrade.com this morning at 9 am CST.
In a clear and obvious reaction to the news that Burger King the second largest hamburger chain introduced new thicker fries, slightly wider than a number 2 pencil with lower sodium and a crisper coating that keeps them hotter longer, ES and NQ stock futures are soaring this morning…Greece gets $10.7 billion rescue loan from Eurozone…
BMO – ES +34.00 and NQ +57.75 futures are crashing up 15 minutes before the open in pre-market trading and point to a gap higher open…volume is heavy for pre-market with a most stocks quoting higher…Financial stocks, XLF is up 48 cents on 3,022,600 shares in pre-market at this time…
Last night ES futures were down over 12 points and this morning up 35, one of the largest overnight turnarounds in recent months…once again reiterating what I have been teaching for a long time…that low liquidity, low volume overnight trading does not predict the next morning’s open...at least not more than about 50% of the time…
TLT is down -$1.55 and the Euro is up 166 pips in overnight trading…
NDX leaders AAPL, AMZN BIDU, GOOG, PCLN and QCOM are quoting higher…
Dave’s Insight for Wednesday: higher Euro…lower bonds… Financials huge jump…setting up a crash up open …Most stocks are significantly higher in pre-market …Look for a major continuation of the support bounce that started Monday…Follow YOUR rules for entry, exits and stops...TRADE THE TREND…
Chart Signals will be watching XLF, TNX and VIX today as key factors in any SPX move…
SPX
Resistance: 1,205, 1,216, 1,230, 1,249
Support: 1,177, 1,160, 1,146
Quoting Down – FAZ, TLT
Quoting Up – CMG, FAS, CF, DECK, CRM, ICE, HUM, FFIV, CAT, GS, SINA, IBM, VMW, NKE,UNP, WLT, ATI, DE, TPX, SOHU, SLB, FCX, URE, MOS, TIF, COH, HLF, GES, LVS, DLR, MCP, SNDK, C, X, POT, SWK, RCL, HAL, V, WDC, LNKD, ANR, ANF, DOW, A, VECO, SLW, UCO, CREE, CDE, CHL, ARUN, SWN, RVBD, CSTR, ZION, CRUS, SMH,TSLA, GRPN, STI, PCX, SWKS, JDSU, AKS, JNPR, CROX, TBT,NVDA, CIEN, TSL, BAC, F, ENTR, AAPL, AMZN, BIDU, GOOG, PCLN, QCOM, WYNN, JOYG, CTXS, BIIB, FSLR, CTSH, SHLD, GMCR, CERN
