Thursday, August 29, 2013

08/29/13: Hoping to open low and then rally up to 1650s

Been awhile since I updated.
Currently markets trying to digest all the negativity in the news.  I like the volatility but I hope there is no war, and nothing comes out of all this.

SPX looks like it's setting up a expanding wedge.  According to Bulkowski, breakdowns occur 70+% of the time but first we need another hit of the upward sloping wedge.

If that's the case, then we should see somewhere in the 1650s and then a breakdown.  However, what if it's a partial decline?  In that case, we may see prices rally all the way up to 1680s.  Not out of the ordinary.  All it takes is someone to say "no strike."

So right now, thinking target first is 1650s but I want tomorrow to open slightly lower...better entry.

After 1650s, the odds are in favor of a trip south but maybe that's not the case this time.  Not that there is a new moon around 9/5 so maybe prices fly into 9/5.  Let's see.

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