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30. December 2008
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Due to the holiday's, I haven't posted updates as often as I'd like.  However, here is a very interesting chart of the past couple week's activity.

You can see we hit the 540° (360+180) level twice (12/8 and 12/17).  The second time, you can see the divergence in the momentum indicator (green indicator below chart) showing weakness.  From that level, we fell back to the 360° level.  This is a 180° move down from that high.  Today marked a 90° move up, which is a 50% move up from that low.  Again, these levels (red lines) are all calculated from the low we had in mid to late November.  The blue levels are calculated from the most recent high set on 12/17 at 918.25.

After a 180° move (as we saw from 12/17 to 12/22), it is common to see a 45° or 90° retracement before continuing in the direction of the trend.  Yesterday, we showed the importance of the 45° level (360+45).  Today, we have shown the importance of the 90° level (360+90).  Does this mean more downside from here?  If so, it means a return to the 360°, then the march to new lows.

Today's intraday action bounced off the 878.25 level (120° blue level on chart below) in the overnight action a couple times, showing the importance of that level as well.

I updated my script to display levels like "360+90" rather than "450".  Because what is more important than knowing it's the 450° level is the fact we made a 90° move above the 360° level (360+90=450).  Similarly, other levels are broken up in the same fashion.

 

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