Good morning. 

 

We made 10 points the hard way on Thursday.  The day was bent in half, but we will take them in all shapes and sizes.  Around noon time we had a guest appearance by Wayne Whaley, this years Charles H. Dow award winner for excellence in technical analysis.  Wayne came to share his view of the likely afternoon outcome based on historic patterns of 3%. He predicted consolidation in the morning and then momentum player return in the afternoon and the market would rally.  That is what happened so thank you Wayne!.

 

Quote of the day:
Confusion is always the most honest response. – Marty Indik

 

Chart

Score

 Day-1

Change

40 DPI

+6

+2

+4

52 WNH

+6

+2

+4

10 DHL

+6

+6

0

Total

+18

+10

+8

 

I am rushing this AM as the newsletter leaves the station at 8am with or without this article.  So quickly, breadth improved up 8 points from the previous day and put in a perfect bull score.  You have to wonder about oversold and we could get some lightness here but if you are willing to hold for a few days the odds are good you will make some money. We could start seeing those emails  “.. market is up xx days in a row.. that hasn’t happened since Mark Antony killed Caesar”

 

Here are the latest post for each of the charts:

52 Week New Highs

10 Day Highs minus Lows

40 DMA % Index

 

 $SPX chart:

 

Opps.. I meant to change our pink line to red before posting.  We can tighten up our ranges in this area and pen in the bull/bear fight that is about to happen between 1049 and 1082.  The bears have given the bulls a 6% leash from the bottom and now the bulls are at the end of that leash, so the question is “are the bulls strong enough to break the chains that bind?”.  (can we break through 1071-1074).   We could get another choppy day today.  1071.50 to 1074.50 is the gap left open from 6/29.  If we close that then our upside breakout target, the value when the bulls declare they are full real is 1082.

 

That gives us our basics.  I haven’t really added anything technical to the chart for a couple of days now as price is playing out pretty straight forwardly now.

 

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Latest Posts for:

52 Week New Highs

10 Day Highs minus Lows

40 DMA % Index