Thread: P&F Chart School

Just a heads up to you P&F chart followers-

Yesterday, the S&P 500 P& F chart broke it's upward climb for the first time in a long time.

Here is the chart:

PF_12-05-2013.jpg

The last time we got a small relief like this on the P&F chart was back in around May- and every downtick since has been small, only like three or four boxes down. I am seriously looking at maybe one more down day, and then jumping back in myself. Not sure yet though- but it was enough of a noteworthy even that I thought I would put it out there.

Good luck.

Dang! Now I am REALLY confused.

A few days ago I saw the "S" fund P&F chart break down and post a negative price objective, indicative of the market turning lower ahead.

However, the S&P -500 chart had not yet turned, so I was waiting to see it go south before issuing a "SELL" signal on the P&F chart.


So now I am REALLY confused.

Yesterday, BEFORE the Fed annoucement of a taping of QE3, the market fell enough that the S&P-500 P&F Chart switched direction, registerd a new "double bottom breakdown", and a negative price objective was created. That's indicative of a lower stock market ahead. And sure enough, the P&F Chart created that signal yesterday!

12-19-2013.jpg


BUT:

Since the FED made the announcement yesterday that they are going to start easing off the pouring in of liquidity, that announcement resonnonated across all the markets yesterday, and everything shot higher.

So......are we about to get a downturn, as the CHART indicates?

-OR-

Did the FED announcement provide enough of an incentive that we are about to get our Santa Rally after all?

Ho Ho Ho...

Santa-01-259x300.jpg


(Sigh- if this was easy, we'd all be rich, wouldn't we?)

IMHO the PnF charts are telling us we are in a 1770-1810 trading range. Which ever of those boxes gets violated first, should be the dominant direction the markets will take.

TTB

Originally Posted by JTH

TTB

In COB for TTB

TTB = triple top breakout I presume. We are currently in what is often the most bullish of all the patterns, a 3rd of a 3rd of a 3rd. It's uncharted territory from here on out with no overhead resistance. Are we in the start of another melt-up that will carry into 2014.

Shucks-

yep- triple top breakout--but I wasn't near a computer today till now. .

price objective at 1930.

I'm going back into the pool...

triple12-20.jpg

This thing has huge legs and may grind up for a long while.

Originally Posted by Birchtree

TTB = triple top breakout I presume. We are currently in what is often the most bullish of all the patterns, a 3rd of a 3rd of a 3rd. It's uncharted territory from here on out with no overhead resistance. Are we in the start of another melt-up that will carry into 2014.

Originally Posted by sdouglas3

This thing has huge legs and may grind up for a long while.

Actually, now that a majority of people are getting excited about the stock market, it might be time to head to the sidelines.

Getting excited about the stock market doesn't mean much unless they put their chips on the line. This market continues to follow the 1995 breakout trajectory and can run and run.

Just a note- the S&P 500 P & F chart signaled a "High Pole Warning" this morning.

An indicator of possible lower ahead.

It has not yet been enough to signal a formal reversal in price objective- so we will just be watching this much closer today and the next several days in case it does.

1-24-2014=HPW-SharpChartv05.jpg

I also note that the "S" fund chart is doing the same thing- a high-pole warning. The "I" fund chart has not yet flipped to that, however.

Anyway- now is a good time to pay close attention and see where things are going. Stay alert here.

Good luck.