Market Diary

When I am doing my weekly analysis, I came across long term DOW, It seems to be interesting. Every Long Bull market there are a 15-20 years of sideways period. If market went away from the trend line eventually market will adjust by itself to catch up by trend line. Now Trend line is 4103 for Dow or we have to go through 10 more years sideways to catch up the trend line. What will happen ? Wait and see...

I want to bring this chart when spider hit on support..

An ascending triangle is forming in DIA and SPY FYI : All formation is valid until it broke UP

Spider is trying to hit about 5 days in same resistance 107.55 to get over. SPY is in tight resistance vertically and diagonally. Either get over or Surrender..

A Cup and Handle is forming OIH. The pattern will be valid only if Breaks UP 123.43

TRADE IDEA FROM MARK ==================== I wanted to offer a trade idea and get your feedback. It’s a small $1 iron condor spread on the IWM September quarterly’s, so it’s over in a relatively short time, but has a potential decent return. Although the IWM has been going up pretty strong the past two weeks (see chart below), I’m expecting a leveling out or lower rate of increase over the next 15 days which should keep it within the IC range. The credit is $.28, not a huge amount, but still decent for the risk. Remarks : Looks good to me. Range of IWM by 10/1 , I am expecting between 61 -58

If GLD Broke UP 100, chart will be valid inverse H&S for Gold..

Spider Getting into resistance again. If market broke UP, that will be a break of 61.8 % resistance and can go higher . follow the diagonal support

Market closed on resistance. It will be interesting next week. -= HAVE GREAT LONG WEEKEND =-

When I was doing a long term analysis (10 Yrs) of S&P 500, I noticed that in 2000-2003 recession, S&P 500 down from 1552.87 to 938.02 and retrace to 1172.89 (38.2 %) and went back to 765.89 (18 % lower than the previous low), Market retested this support couple of times in 2003 . If History repeat by itself this time , IF IF... in 2009 Market touched 666 and went back to 1040 level (38.2 %) and coming down (if so).. If Market came down like last recession , we can expect around 18 % lower than 666 approximately 540 level !!! Will that happen ? What you think .. I need active participation from each and every one from the group, What is your opinion.. ?

VIX is holding 28-32 Range and S&P going for diagonal support.. We can see some tug of war in 978 area with Bulls and Bears.. If Bear won, then S&P will go to 870 area by end of September.