It’s always a great feeling when I see a market pivot time and then find an event, such as an economic report or a Fed meeting that coincides with the time. This coming week, I have nothing besides Ben Bernanke’s speech tomorrow, but the pivot is showing to be extremely important, much more than the June 19th, July 3rd, and the July 19th pivots. The date is August 6th, which leads into the first days with a reversed trend, August 7th and 8th.
The cluster between August 6th to 8th represents.
- 89 days, a Fibonacci number of trading days since the April 2nd top
- 55 days since the end of the May decline
- 34 days since the end of the first advance in June
- 13 days since the July 19th cyclical pivot based from June 19th
I know, I feel like I should bring out a book of Nostradamus now and start reading 2012 prophecies. That’s why I never trade using this alone. It’s essentially like a sign you see when driving that says “road work ahead.” So you should keep an eye out for sudden stops. To try and pick a top, I will be watching the momentum indicator for negative divergences on the hourly and 120 minute chart.
After these pivots, there will not be another pivot, besides intraday pivots, until September, and then during early October, there are several pivots that have more importance than any I have seen in the past two years. I’ll post more about them when the time comes. Until then, happy trading!
Leave a Reply
You must be logged in to post a comment.