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Friday, November 13, 2009

Back Testing! Check It and See

I've got a fever of .... 1093? Oh, wait, that's the price of the SPX

Yep, so far this looks like a broken channel back test. It can ride it up for some time. But *at the most* I would expect it to challenge the high on Wed of 1105. Because as I was pointing out yesterday Fish in a Tree, How Can That Be?, those were some severe trendline breaks. And if it goes back up to 1105, just load up on shorts like I did on Wednesday.

My count has us in a B wave now, and they are full of weird moves with nasty retraces. So be careful that when you are counting an impulse that it is not a zigzag.

The 1 min chart is also showing some interesting down channeling that could be forming.

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