"As a technician, I feel that there are few analysts that offer value for me, but you do. Your work on Gold ratios has helped my analysis greatly." --Jordan Roy-Byrne, CMT (The Daily Gold) 4.9.10

Thursday, December 16, 2010

SPX Big Picture (2 ways)

http://www.biiwii.blogspot.com
http://www.biiwii.com

I get so into the ratios and indicators that sometimes I forget how much fun it is to simply chart nominal markets.  I believe vital hints will show up in the indicators first however, so that is where the primary focus remains. 

Here are two versions of the S&P monthly, in response to the chart linked by commenter Scion in the previous post.  First is a log scale chart (as was the one referenced in the comment), adding a compelling Fib retrace level and lateral long term resistance.  The second, for the sake of fairness, is a linear scale chart that tells a much different story.

Trend lines usually work best with log format, but to tell you the truth, I put much less weight on trend lines than most charties.  I am much more compelled by lateral support/resistance.