The Value Line Arithmetic Index (VLE) looks to be in good position to run to the 1:1 ascending Gann Angle. This move is only about 3% and isn’t anything spectacular. The volume and internals of the market are weak, but price action and geometry are strong.
Price has reached the highest level since January 1st. The total market is moving up off the bottom.
Tomorrow is 60 days from the March low and a place to watch for a change. The change could be an acceleration up or down. Or no change could occur. In most cases cycles are places to watch for change. Occasionally, when multiple cycles line up on the same day, it warrants taking a position before the move. March 14-17 was one of those times. Tomorrow is not.
Chart courtesy of Stockcharts.com
Post Modified: July 3rd, 2008 at 12:27 am
Tags: Gann Angle Fan · Gann Emblem · Value Line Arithmetic Index (VLE) · Volume5 Comments
5 responses so far ↓
i guess that we may see an acceleration up? at least initially, until the news of the economy still not doing great catch up? the question is what is going to make this juggernaut slow down?
today was the first time in a long time that we had decent volume on the qqqq, even apple showed decent volume…
Kurt - I have no idea about the economy. All I know is the majority of talking heads are always wrong. As long as we keep in mind we get paid for what the market does without regard to the economy, it makes this game much less complicated. Those who guess right on the economy don’t get paid anyway… even the economists make the same whether they are correct or not…
andy if u connect the 3/03 low and the7/06 low in spx u get a trendline that we broke and have stayed beneath,the tops of these rallies have stopped there ,i know u dont really use trendlines but that seems to be a strong resistance line
Mike - Yes that is something to watch. I don’t think price will make it through this line to stay on this attempt. It should next fall/winter. I’m working on a post for tomorrow morning that looks at long term Gann lines and time cycles.
thanks ,your cycle dates,jan and mar were dead on