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JTH

PnF: Compression Pops!

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We've talked about prices expanding, then we talked about prices compression. After the compression, prices largely resided in the lower half of the previous expansion range. Now prices are making a move to the upper half of the expansion range, with potential to retest the previous 52-week highs or go back and retest the January lows.


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AGG triggers a minor Double Bottom Breakdown

  • This is the 1st sell signal since the 30 Dec 2014 Double Top Breakout buy signal which lasted 15 days
  • We are in the beginning of a small downtrend and setting up potential for a descending parallel price channel with 1 lower X, and 1 lower O
  • A traditional PnF triangle pattern should have at least 5 columns, this one doesn't meet this criteria because it executed earlier than expected

7/16/04 Up day-1-png

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The S&P 500 triggered a Double Top Breakout on 20 Jan

  • This is the 3rd buy signal since the 18 Dec 2014 Double Top Breakout 23 days ago
  • Major overhead resistance at the 2089.8 triggers fresh 52-week highs (roughly 7 boxes or 1.75% above current price)
  • We are in the beginning of a small uptrend with 1 higher X, and 1 higher O (with the O being a triple, which may serve as strong support)

7/16/04 Up day-2-png

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The Wilshire 4500 triggers a Double Top Breakout

  • This is the 3rd buy signal since the 19 Dec 2014 Double Top Breakout 22 days ago
  • Major overhead resistance at the 1067.56 triggers fresh 52-week highs (roughly 4 boxes or 1% above current price)
  • We are in the beginning of a small uptrend with 1 higher X, and 3 higher Os

7/16/04 Up day-3-png

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The Transports trigger a Long Tail Up (both a Double Top Breakout & 20-box reversal)

  • This is the 1st buy signal since the 2 Jan Double Bottom Breakdown signal which lasted 15 days
  • We are trendless with 1 higher X, and 2 lower Os

7/16/04 Up day-4-png


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The NASDAQ 100 triggers a Double Top Breakout (currently shows a Bear Trap w/bullish price objective)

  • This is the 1st buy signal since the 21 Jan Bear Trap, which proved to be a valid and short sell signal
  • We are trendless with 1 higher X, and 3 lower Os

7/16/04 Up day-5-png


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What a difference a few days can make, we've climbed off the bottom and now get to see what happens next. From my current perspective, I'm right where I wanted to be at this stage of the month and fully loaded with 2 IFTs. We still have price levels to work out, but for now, I think we've gotten past the worst of it, I'll know more once I process this week's stats in the Week 3 Blog.


Trade hard…Jason


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