Loading ...Rambus Jaws of Life?
Is now looking rather ominous. We also came within a wisker MA’s of 15980 on the DOW today. The upper blue line is the Rambus “Jaws of Life” line (price now below). MA thinks this may result in a Slingshot but some analysts of the Elliott Wave persuasion believe this brings the lower blue line (Jaws of Death) into play.
What say ye, TA aficionados at GoldTent?
Armstrong From Jan 7, 2016:
http://www.armstrongeconomics.com/archives/41571
“The U.S. share market has fallen following the problems in China. We elected the Daily Bearish Reversal at the 16933 level and this warned of a test of the next important support zone. A daily closing below 15980 will warn that we may in fact penetrate last year’s low and pull off a slingshot move.”
Here is my chart with a simple trend line out of the 2009 low. Looks like it broke down right near the market top back in May 2015.
How does it all play out? Longer term is still in doubt, but this is what I am looking at for the current 6-8 month Intermediate Cycle. We have now made a lower IC Low on the SPX and that is never a good thing as it is one of the key signals that an asset is entering a Bear.
Shorter term Trading Cycles can and do make lower lows which lead to the next IC low. The longer Intermediate Cycle should never make a Lower Low (Cycle Rule #1), as this is another early signal of an emerging Bear Market (just look at the Gold chart that has been stair stepping down to Lower IC Low one after another. Basically, you want IC’s making higher highs and higher lows. Once this reverses, the danger is the stair stepping down process into a Bear Market Low.
UVXY is acting “exhausted” in the ascending wedge; appears to be a BEAR wedge–my vote is your bottom chart. Rally to 1950-1992, then collapse to 1600. Pure conjecture–I am flat, waiting for Monday. I plan to sleep well this weekend!
Good Policy Eagle
Flat for the weekend…Lately its all day trades
Yes the Bear looks Ominous for sure
Hmm, yes I had a very similar megaphone chart and thought that the second half crash in 2015 was like a gap below the upper megaphone pattern blue line. I was looking to see if [rice would come back to that line as resistance. It looks like the Dow poked its head above the line for a while and looked like it was testing it from the topside at the end of 2015 but it broke down through it again.
Bottom of megaphone is at about 6000 or a bit lower perhaps, that’s about a 2/3 drop. Megaphone measured move would be down another 2/3 to 2000, then. Not quite Prechter’s triple figures but not far from it. When I drew a chart myself last year, I actually got about 1850 as a downside target for a Dow megaphone breakdown but surely money printing will come in to save the day?