Sunday, September 5, 2010

How Big of a Rally?

In the chart below I highlighted 3 previous continuous spx up moves on the daily time frame. They all developed after significant lows and were between 80 and 90 points in length:

This suggests that the market will rally to 1120 - 1130 before a break of a few days can take place. If this move is similar in structure the target will be achieved in 2-3 days.

Note: For the flash crash I took the low of the next day into consideration as the initial low on the day of the crash is somewhat controversial.

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