New Market Action is Right Around the Corner

By: Marty Chenard | Wed, Nov 16, 2011
Print Email

If we were to get a Santa Claus rally ... How high could it go?

The answer can be found on today's chart as seen below ...

First, notice that the SPY has a symmetrical triangular pattern that is very close to its apex (the convergence of its support and resistance lines). Being close to the apex means that it will have its breakout very soon.

Let's face it, there are only two possibilities here ... it either breaks out to the upside, or to the downside.

If it happened today, it would likely be to the upside because there is still a small positive bias to the upside. After the next 24 to 48 hours, that could change because the positive bias has been diminishing.

What would it look like if the breakout is to the upside?

Given that we have a symmetrical triangle, the projection would be to slightly above 134 ... and guess what? That happens to be the intra-day high, resistance level, coming from July 21st.

What would it look like if the breakout is to the downside?

If you look closely at the chart, there is an unfilled gap at 117.245 from an intra-day high that occurred on October 7th. If a downside breakout is the one that occurs and holds below 123.51, then the likelihood is that the 117.245 gap would get closed with an outside possibility of moving lower to 117.34 which would be the pattern's downside projection.

So, keep your eyes open because some market action is right around the corner.

SPY Chart



Marty Chenard

Author: Marty Chenard

Marty Chenard
Asheville, NC 28805
Tel: 828-296-1200

Marty Chenard is an Advanced Stock Market Technical Analyst that has developed his own proprietary analytical tools and stock market models. As a result, he was out of the market two weeks before the 1987 Crash in the most recent Bear Market he faxed his Members in March 2000 telling them all to SELL. He is an advanced technical analyst and not an investment advisor, nor a securities broker. is dedicated to Stock Market Investors who want the best information on stock charts, stock market trends, stock market timing and technical analysis.

Be My Guest and Take Advantage of Our Free Membership ... Get a Free Membership to ... Youll receive important daily messages before the market opens and direct links to todays important web pages. Information and messages that are often not posted on our website. There is no obligation or expectation on our part ... it is just our way of proving our accuracy and timing expertise to you. Please click here for your Free Membership.

Copyright © 2006-2017 Marty Chenard

All Images, XHTML Renderings, and Source Code Copyright ©