FTSE

i mention again - divergences, again it failed and got blown out of the water, divergences must be confirmed and it's dangerous preempting a trade on just a div.

in yesterdays example of ftse ...that - div would have confirmed on a break below 50/55, & once that wedge got broken, well it traded within it & broke to the upside and remains abv the key number of 72

in the meantime, again i note 72 key.... and its' holding that level once it ripped through and closed abv it eod.,todays open it backtested that area and again held twice so far.

so for today providing 72 holds ftse cannot go lower and can target (providing it cant take out 88) 6615/20+, if it breaks down below 72> (Ref yesterday 4hr candle @ 1200)then 55/44/35 zone... if you look at the charts when ftse broke abv 35 there was very little resistance with a (55 being a pivot in between) and headed towards the 72 zone, the same applies on the way down.

6378 > 6391 > *6412 > 6422 > 6467/77 > *6486* > 6505 > 6535* >6572 > 6615 > 6720 for now.

as for the spx, it closed abv 1628 yesterday.... key watch will be the action at 34/36 ( futures hit 34 @ 1am this am) break abv then watch it rip up to 1646 >58 > 1668.....

as the market moved higher the pullback will also move up a level so 1st 1614/25 > 2nd 1604/98 will now act as support.

rgds WS

Is the 5 min chart going to give us an early indication of retracement/downside ????

www.dropbox.com/s/kb6ky02131wekjs/FTSE%2...0-%205m%209.5.13.gif

Hi J - good spot but then again you got the skillzzzzz yes one more pullback to test the 1598-1605 (mini 4) area then one final rally to complete 3 - spx needs to stay below 1625 and take 1614 for lower targets, there are -div appearing also.

should that pullback occur (i think it will) and then reverse from the lower range abv then final rally a mini5 could end @ 1625/28, a close abv then it could head to the next pivot of 1668 +- 7 points.

expecting a minor correction after that to approx 1575 > 1550-34 also.. note the low of the flash crash a few weeks back 1563....then another final pump to previous high or slightly higher high (or truncation) then a major correction mid june imo going into the summer months....

the bull is strong.

rgds WS

Hi WS,

Haven't been following the indices much recently, but did notice this on the S&P daily this morning:



dl.dropboxusercontent.com/u/20815047/S%26P500daily08_05_13.gif

Top of channel so could be nearing the end of the move. There could be a false breakout to the upside here - sometimes happens at the end of a diagonal triangle - so tonight's candle and price action could be very interesting.

One thing to note, however, is that the move up from Nov lows has 7 waves to it. This suggests to me that there's one more correction (perhaps from this channel top) due and then a final rise to complete a 9 wave sequence which would be exactly right for an extended wave 3 (of 3) which, if I'm not mistaken, is where we think we are?

ATB.

Here's the updated ftse chart from below....Triangle played out and hit close to 72 pivot....

72 key for ftse - watch the wedge forming.

dl.dropboxusercontent.com/u/40497882/Ftse%202hr_08May13.JPG





dl.dropboxusercontent.com/u/40497882/Ftse%202hr_08May13.JPG

pop !!