Outlook July 26
Posted by Danny on July 26, 2010
While downward pressure on stocks was evident in the beginning of the week, we didn’t get real follow up on the previous Friday’s drop, and the market recovered nicely towards the end of the week.
This means that for the first time since last April we are seeing signs of strength in the market. Of course there are a few more days to go in this Red Period, but the odds are shifting towards a rally that will last into August. It will become more clear this week.
Today I want to show you a chart of the S&P 500 Index (click for larger image).
Since last year the price action has been confined between a few support/resistance lines. Notice how the blue lines connect nearly all major tops and bottoms over the last 12 months.
These lines converge at two points: in mid September and mid November.
It will be interesting to see what happens going into these dates.
Currently I would look for some top in August followed by new downside action.
Based on this chart and the LunaticTrader cycles I will be watching out for the days around 20th September, 15 November and 30th November.
Good Luck, Danny
Yash said
Hi Danny,
Do you have Oct 8 2010 anywhere in your mind?
Yash
Danny said
Hi Yash,
There will be a couple of lunar events on October 6th and 7th.
But nothing stands out for October 8.
What do you expect for October 8?
Danny
Yash said
Ocy 8 2010 is venus retro start date. Last two major bottoms March 6 2009 and Oct 10 2002 happened exactly when venus retro started.
Danny said
OK.
We will keep our eyes open in October.
Helen said
Today is fullmoon is it why stocks are high?
Danny said
Hi Helen,
Stock peaks on full moon do happen, but historically it has been more common to get stock market bottoms around full moons.
Our site offers more details about the effects of various moon cycles.
See: https://lunatictrader.com/?Moon_Cycles
Danny
klout said
hello danny:
nice charts….that trendline convergence analysis is sweet …. forecasting is what is important. nice work
did u do any study of robert taylor techniques??? tidal charts. tides of course are a phenomenon produced by movements of the moon. u may find soem synergy there.
k
Danny said
Hi Klout,
I hadn’t heard about Robert Taylor, but was able to google for it.
I suppose you are talking about this: http://paradigmbook.com/index.html
Will take a look at it.
Tides is something I consider adding to the intraday charts in LunaticTrader
Thx, Danny
klout said
Hello Danny et al
here is a great tides software program…it is shareware
http://www.arachnoid.com/JTides/index.html
peace and blessings
klout
Danny said
Thanks. I will check it out.
Interesting chart « LunaticTrader said
[…] Posted by Danny on September 15, 2010 This is an update on the chart we first posted in our Outlook July 26 […]