In January 2006, I wrote Three Degrees of Counter Trend. Since then the market continued to move up. This chart show some of my previous analysis with the price action that has taken place since January.
Since then I have revised my projection.
After doing some additional Gann work to give me a feel for timing the top of this market. I believe that we have reached the top of the market today.
Just above today's high of 771.54 sits a major Gann resistance level (see the brown arrow below). If the Russell 2K remains below this Gann level I will expect continued weakness (red arrows). If the market can climb above I will expect continued strength (green arrows).
The first level of support should come in between the 655 and 645 area (see the MOB and the Gann levels below.
Putting my "money where my blog is" I have taken a long term short position and will be trading this guy to the downside until my indications show otherwise.
Just curious, Why would you short this before price crossed the Reg Trend Channel to the downside?
Posted by: Kevin B | April 19, 2006 at 10:14 PM
Kevin, I was using an alternative trigger technique (sellers bar) to enter the position. I also dropped down to a smaller time frame.
Posted by: eosias | May 08, 2006 at 03:00 PM