i. Aug 8
ii. Aug 22
iii. Sept 6
iv. Sept 12
Since the Debt ceiling saga and S&P Downgrade of US debt, $SPY has logged in a first low on Aug 8 2011 based on closing price.
And subsequent higher lows on Aug22, Sept 6 and Sept 12.The resultant Stochastics is even more pronouced ! The first 2 lows suggest a double bottom with the required amplitude on the Stochastics.
The next 2 lows in September, on Sept 6 and Sept 12, although volatile with wide amplitude between peak and trough on the SPY chart, does not correlate with the narrower amplitude on the Stochastics.
Suggesting that the September waves and lows although with wide swings and mistaken as a major wave in itself is but part of a upward continuing sub waves beginning on Aug 22 labelled "2".
At the moment : prices are Triangulated into a narrowing range. 115 & 118, the lower and upper limits, support and resistance. Above 118 will imply a breakout with a view for 126 & 127 the 200days MA on the daily chart.
Furthermore, September Stochastics (i & ii) is sitting on August Stochs peak on 18Aug.
Turning resistance into support right at the mid level of 49.14 Stochs reading, which is also the previous support on 18 July 2011.
So we have a lot of significant points here.
. 4 Bottoms in Aug and Sept.
. Prices is triangulating primed for a breakout
. Sept Stochs low is sitting in August Stochs peak.
. Stochs priming for a breakthrough above the mid-level which also is the
July 18 Support.
Anticipating further upside on the Index at least.........
