If you look at the daily SPY chart below, the sky is the limit. Price action has all that empty space above to float around. Where is the resistance? One may ask.
What resistance?
Notice that price action has fallen below the middle line of the Andrew Fork uptrend; this may just be price action way of saying momentum is slowing down a bit. Yet the overall trend is still UP.
Now look at the monthly chart below:
Whoa! Where do those giant walls come from? Surprise! Surprise!
Well, they are the giant walls of 2000 and 2007. My money says these walls are very tall and resistance could be formidable.
From a short-term perspective, we still have room for the uptrend to continue before these walls come into sight. For 2013 to be a significant bullish year, these two walls have to be taken out the sooner the better; otherwise, a major correction may be on the horizon since March 2014 will be clocked at the 5th year of the bullish cycle. Please see my post here regarding this long-term cycle.
I’m currently semi-bullish with 37% cash.
Oh yeah! I’m still smarting from that %*%$! ETRM bet that has set me back one step. Holy Smoke! Did I just cuss? Pardon my manner!
Don’t worry, I still have eleven months to this year to bank coins.
Trade well!
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Looks like it might be a 12 year head and shoulders!
word up hunter
otherwise trip tops dont usually hold
One way to stop our self-fulfilling prophecy of triple-top is to have price action launches a spectacular breakout of this two giant walls and never look back. And I believe this is what “The Fly” is betting on.
Thanks for reading, Noodle!
Cheers!
Holy Mackerel! I hope you are wrong; otherwise, the breaking of this 12 years H&S neckline will mean the collapse of our financial system since it will need to take out the low of 2009.