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Thursday, April 19, 2012

Going, going...

I'd be impressed if the bears were able to deck OPEX -- the perennial champ -- and let the H&S pattern play out just yet.  But, here we are, at the bottom of the nice little channel that's guided the upside since 1357 on April 10.  I suspect the sell-off will be limited to 61.8% of the rise, or 1370. 

The nice thing about the .618 is that it leaves open the possibilities of a Gartley, with a reversal at the .786 at 1365, or extension to a Crab's 1.618 at 1335 -- which would be a nice level at which to start a back test of the neckline.

If there's one thing you can count on these days, it's the market's insistence on maintaining maximum ambiguity for as long as possible.

Speaking of which, if the channel does hold, it will intersect with the shoulder line at 1400 tomorrow.  Hmmm...

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