I like to draw circles … just work w/ me. how the 1987 low and recent high are connected by geometry
a couple weeks ago I posted this: https://bartscharts.com/2018/08/30/jpm-and-tops-of-circles/
it was some geometric work I did on JPM and ‘real time’ the top of a circle. I do have a theory of ‘why’ this technique works in projecting support or resistance but I’ll leave that to me and some of my friends. it really doesn’t matter – does it?
i’ve been silent on the blog world for a bunch of reasons .. the main reason is a loss that occurred in my family and I really haven’t felt like doing much. but, the emails have been coming in about the most recent moves.
if you go back and read you’ll find that I was pretty defensive for the entire summer .. did we/me miss some of the last part of these moves – yes but ultimately, the only buy pattern around was ABX and GE. TBT was also a nice play but the chaos of the euphoria just had me step aside.
so in order to get back into it, I put some Enigma on the Spotify and, specifically, Morphing Thru Time .. pretty ‘trip-in-dicular’ to say the least.
I called up the Dow Jones and could just see the connection between the 1987 low and this most recent high. Tops of circles are cool.
F has hit the zone for the projections sighted a few weeks ago. a weekly ‘doji’ has formed but no real bullish divergence. perhaps continue to wait till 4.86 OR a weekly close above 10. all that being said, this area is a BIG deal for Ford (F) ….
Extensions of 1.4142 and 1.1286 (musical note)
looks like $8 cold be big support …
the NYSE Index has a TON of stocks in it and is a very good gauge of the overall health of the market. As you can see there is still a much bigger target (almost perfect – an AB-CD and 1.618 extension on top of each other ON A MONTHLY) out there in/around 14217. But note the blue measured moves … they have been very consistent in causing resistance … so, we might be in for another bigger dump if you look at the daily.
strength should get this puppy moving up to the target mentioned above around the 14,200’s so watch this index closely in the coming days and weeks.
have a great LABOR DAY weekend and enjoy your life …
if you do a search for JPM on this site you’ll see it’s pretty much ‘paused’ at every PATTERN out there but ultimately broke thru and kept going higher w/ strength. Good on em’!
we are again at a PATTERN completing. Top of a circle, 1.618 price projection from the all time low, 2.71828 (natural log (found all over the Great Pyramid OBTW)) extension and some Adams pitch fork trend line stuff ..
so in the world I live in that’s the reason we have stopped in/around the 118 level.
note, when working w/ geometry look at how the market reacted to your work .. the dashed purple circles show how the ‘arc’ was support and when it hit 3 o’clock on the circle it exploded .. this just gives you credence that the arc is being respected.
note on the Adams Pitch fork that the ‘median’ line was responsible for resistance and support along the way up into these levels.
so what’s this all mean? lot’s of math in/around 118 so resistance is expected. is it a top or the top – I have no idea but I’d be watching carefully …
11/20/2018 – so, this ratio is running the show right now. if you read the below NONE of this should be a surprise as the PATTERNS worked and the XLP/QQQ buy pattern has taken off, causing a risk off mindset and the NAZZIE to get blasted. That being said, all is not lost. While I do think we have some more carnage to come, ultimately the ratio is going to smack right into a very strong trend line and the technical analysis concept of POLARITY should cause support or THE bottom for a GREAT BUY. The chart below should give you and idea of why the area labeled ‘resistance’ should offer strong support for the institutions and offer a great BUY of the Q’s and technology.
let me know if you have any questions.
note the ratio .. we have a pretty nice bullish engulfing pattern on the ratio which is precursor to potentially further weakness. If looking to BUY the Q’s would definitely wait for a nice sell pattern or overhead resistance to be hit before stepping in …certainly appears to have some room to run.
here’s the QQQ on a daily time frame w/ the target zone denoted. sure looks like another wave of selling should be starting to complete a 5 waves sequence. Is that A or 1 … if A, then a rally should occur followed by more selling and then a BUY. If 1 then we have, potentially, a lot more downside to come.
I do not know or care which it is ….1 or A. Just looking for a pattern.
Also, doing a monthly log below to look for key trend line support or breaks.
In July, we noticed this pattern completing. Yes, we went 3 points thru but the RATIO held and popped big time today. Watch the median line shown below on the XLP/QQQ and see if price goes thru the line then the sell off could continue.
so, the NASDAQ looks unstoppable … we have sell patterns on the DOW, the S&P, the NYSE Index but the NASDAQ is moving into new territory and it sure looks like finishing/close to finishing a 5 wave sequence. So, why not do the XLP / NASDAQ? Honestly, I don’t know why I haven’t done this one before. I’ve always looked at the NYSE Index or the S&P versus the XLP. One would think that the high flyer would show tendencies to pivot UP or DOWN based on risk on/off mindset by the institutions, right?
so, here’s the XLP / NASDAQ and it paints a nice picture.
- note the AB=Cd pattern that is completing and showing a bullish hammer as of this past Friday’s close.
- RSI – been pegged at the lowest levels since 2000 and has finally showed some bullish divergence.
- we are BELOW the .786 retracement BUT we are not at new all time lows (vice the NASDAQ that is all all time highs)
- there is another level for targets lower (.886 retracement and 1.618 extension) if this level gives away …
- XLP/NASDA w/ the NASDAQ overlaid and INVERTED
- NOTE – EVERY major pivot higher/lower has been at a pivot of this ratio .
Folks … don’t get complacent as there is a very large probability that the next move – across the board – is down.
Just calling it like I see it …
Happy Father’s Day!