Price Time Volume Investing

The daily two bar swing chart of the Nasdaq 100 (NDX) shows price has swung back upwards after hitting the 25% retrace of the range from the March low to the high 90 days later.  I see a 30 day A-B-C corrective pattern with the current swing moving back up through that pattern.  Until price takes out the June there is still high then danger of a continuation of the short term down trend.

The SP500 Index (SPX) corrected further and is below the 50 day moving average.  The SPX is obviously weaker than the Nasdaq and is probably not a good place to look for stocks during the next leg up… well, assuming the next leg up occurs.

This chart of the ValueLine Arithmetic Index (VLE) is measured in trading days versus calendar days.  I noticed this chart today and think it may be significant.  I usually use calendar days but it never hurts to track both.  The mid-point of the move (in time) hit at a level where price is moving toward this week.  A square out a few points higher today may start a concerted move up.  Or maybe not.  What do I know?  I’d rather be fishing.

Related Posts

• Weekend Outlook – 18Oct09 (October 18, 2009)
• Swing Chart Update (October 16, 2009)
• Gann Squares of 52 and 9 on the Nasdaq 100 (October 7, 2009)
• Treasury Bonds Swing Down on Charts (October 6, 2009)
• US Dollar Downtrend Remains Intact (September 30, 2009)

Tags:   Gann Square · Swing ChartsNo Comments