It might just be my imagination, but it appears we have somewhat
of a pattern in the NYSE. The price data
(I only charted Jan-07 to the present) seems to kiss the blue downtrend line
just after the “apex” of a parallelogram – then drops to the red support line
below. After that is anyone’s guess;
there are examples of both breaks to new lower parallelograms as well as
rebounds to new highs.
Should this pattern hold true, it would appear we are headed
to the 6600 range by about mid September.
Ichimoku Cloud Update:
Recent price action has put us back in the cloud (see
and that’s where we’re sitting:
Given these two charts together, I had entered some intermediate-term
short positions Thursday and Friday with relatively-tight stops above the upper
cloud. Although I have individual cloud charts for every position, the following is the NYSE stop data for the next few weeks (as of today):