Extreme Move Expected! - Up or Down?

By: Gordon Long | Fri, Oct 23, 2015
Print Email

A Follow-up to our predictions in: Technical UPDATE - One More "umph" then "AAAAAHHHHHHHH"!!!..... October 21, 2015


 

Market action on Thursday lifted in to the High Probability Target Zone published in TRIGGER$ on October 1st.

S&P500 Daily Chart October 1, 2015

"Current market form suggests a consolidation, with another lift up needed to complete before the next significant drop occurs (continuation of the dramatic fall off that can be seen). This could see the red channels above re-tested...... bringing the market back over 2050" -- TRIGGER$, Oct 1st, 2015

S&P500 Daily Chart October 23, 2015

Chart 2 shows us what occurred. The market lifted as anticipated, moving through HPTZ's (1)(2)(3)(4), retesting the significant red channel.

If you have been following any of our recent posts, we have been looking for 2055 and the target at HPTZ(4) specifically now for a number of weeks.

From here I am seeing two technical possibilities, both extreme moves to consider.

I have previously discussed a potential down that could be similar to the fall off we saw at the end of August. Chart 3 shows this with the orange boxes.

S&P500 Daily Chart 2 October23, 2015

Another possibility is an extreme lift, similar to what we can see coming from the last bottom, or start of the C wave. Blue boxes show this potential. The green channel that can be seen to have held the most recent action is technically a continuation pattern that says we could see a move out of the channel similar to the move in to the channel.

The Blue boxes represent this move, and if it occurs we could see the market back to previous high levels (2140.00)

All indications at this point say there will be a continuation of the lift. However this can change quickly and we will need to watch the significant technicals to see which ones break and which ones hold.

A lift up through the next red channel resistance would be a good indication of more lift potential. Note however that there are several significant technicals above the market still and any of these could stop a lift short. For example, the next heavy green trend line that can be seen is the top resistance of the previous pattern the market was in before the drop in August. If the market reaches this, we would expect a reaction, even if it is just a consolidation. Reversal would be watched for.

IF the market stops soon and starts to fall off, a break through the bottom of the green channel that has just been lifted out of would be a good indication that more down is likely, with a possibility to see a drop off to around 1780.

Either way, the market is poised for a significant move, up or down. Don't guess. Wait for the technical triggers and follow along with what the market actually does.

Thank-you &
Good Trading
Andrew J.D. Long, MFTA
www.triggers.ca

 


 

Gordon Long

Author: Gordon Long

Gordon T. Long
Publisher - LONGWave

Gordon T. Long

Gordon T. Long has been publically offering his financial and economic writing since 2010, following a career internationally in technology, senior management & investment finance. He brings a unique perspective to macroeconomic analysis because of his broad background, which is not typically found or available to the public.

Mr. Long was a senior group executive with IBM and Motorola for over 20 years. Earlier in his career he was involved in Sales, Marketing & Service of computing and network communications solutions across an extensive array of industries. He subsequently held senior positions, which included: VP & General Manager, Four Phase (Canada); Vice President Operations, Motorola (MISL - Canada); Vice President Engineering & Officer, Motorola (Codex - USA).

After a career with Fortune 500 corporations, he became a senior officer of Cambex, a highly successful high tech start-up and public company (Nasdaq: CBEX), where he spearheaded global expansion as Executive VP & General Manager.

In 1995, he founded the LCM Groupe in Paris, France to specialize in the rapidly emerging Internet Venture Capital and Private Equity industry. A focus in the technology research field of Chaos Theory and Mandelbrot Generators lead in the early 2000's to the development of advanced Technical Analysis and Market Analytics platforms. The LCM Groupe is a recognized source for the most advanced technical analysis techniques employed in market trading pattern recognition.

Mr. Long presently resides in Boston, Massachusetts, continuing the expansion of the LCM Groupe's International Private Equity opportunities in addition to their core financial market trading platforms expertise. GordonTLong.com is a wholly owned operating unit of the LCM Groupe.

Gordon T. Long is a graduate Engineer, University of Waterloo (Canada) in Thermodynamics-Fluid Mechanics (Aerodynamics). On graduation from an intensive 5 year specialized Co-operative Engineering program he pursued graduate business studies at the prestigious Ivy Business School, University of Western Ontario (Canada) on a Northern & Central Gas Corporation Scholarship. He was subsequently selected to attend advanced one year training with the IBM Corporation in New York prior to starting his career with IBM.

Gordon T Long is not a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. Of course, he recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and barring that, we encourage you confirm the facts on your own before making important investment commitments.

The information herein was obtained from sources which Mr. Long believes reliable, but he does not guarantee its accuracy. None of the information, advertisements, website links, or any opinions expressed constitutes a solicitation of the purchase or sale of any securities or commodities. Please note that Mr. Long may already have invested or may from time to time invest in securities that are recommended or otherwise covered on this website. Mr. Long does not intend to disclose the extent of any current holdings or future transactions with respect to any particular security. You should consider this possibility before investing in any security based upon statements and information contained in any report, post, comment or recommendation you receive from him.

Copyright © 2010-2017 Gordon T. Long

All Images, XHTML Renderings, and Source Code Copyright © Safehaven.com