“Those who have knowledge don’t predict. Those who predict don’t have knowledge.” Lao Tzu, Chinese philosopher, 6th century BC

PAYPAL

Thursday, 6 December 2012

6 Dec 2012

Movement today continued its run higher and SPX time frames and respective Stochastics are all in the overbought range.  A push up is what we expect for tomorrow to finally end the uptrend and push down hopefully before EOD and EOW.  This should produce a nice reversal candle and a nice divergence to signal a down-trend that should last a few weeks or maybe even start its plunge phase.  EW'rs are looking for a move lower in an impulsive manner (wave 3).  What I know is that on a daily basis, we are at overbought and should turn down.  The weekly SPX also shows sign of weakness as a separate indicator that I have says its still bearish.

NOTE: The Daily trend to this date has lasted 15 days.  That's half a month or 2 weeks worth of trend.  Knowing your trend can surely ease the process of trading.  As I have said before when the daily starts its trend it will last days to weeks.

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