From 1990 to 1997, Kevin Haggerty served as Senior Vice President for Equity Trading at Fidelity Capital Markets, Boston, a division of Fidelity Investments. He was responsible for all U.S. institutional Listed, OTC and Option trading in addition to all major Exchange Floor Executions. For a free trial to Kevin’s Daily Trading Report, please click here.
Commentary for 1/22/13
The SPX churned at the 1474.51 bull cycle high for 5 trading days from 1/10-1/16 until the B/O to new cycle highs last week on Thursday to close at 1480.93, and then 1485.98 Friday to finish +0.9% on the week.
The 5 RSI for the SPX is O/B on the monthly chart at 77.83, weekly 75.37, and 85.16 on the daily chart. The index is up 4 straight days, and Friday was TD 13 from the 1398.11 12/31/13 low preceding the 2013 +4.2% advance to last week’s 1485.98 new cycle high close.
You should always be aware of the symmetry. For example, starting with the 9/14/12 1474.51 high, it was -8.9% and 43 TD`s [5 x 8.6 Pi sequence] to the 11/16/12 1343.35 low, which was at the .618RT zone to the 6/4/12 1266.74 low, 377DEMA, and very O/S. The SPX then rallied 21 TD and +7.8% to the 12/18 1448 high, with a negative O/B 5 RSI divergence, and then declined -3.4% to 1398.11 [12/31/12] in 8 TD. Also, as mentioned above, Friday was TD 13 from the 1398.11 low, so the sequence of symmetry has been consistent with the reversal price action despite the Fed`s actions, Fiscal Cliff etc.
Prior to the 9/14/12 1474.51 high there was a -10.9% decline from the 4/2/12 1422.38 high to the 6/4/12 1266.74 low was also 43 days [5 x 8.6] and below the 1289.60 .50RT to the 10/4/11 1074.77 low, and above the 1207.56 .618RT. The 1266.74 low was also at the 377DEMA, O/S, positive 5 RSI divergence, and also had longer term Pi symmetry, so it was a very high probable reversal zone.
There was also square root symmetry, in addition to geometric date symmetry, and some other fib symmetry in the above sequences, but I covered the primary information for you to get a quick review, and realize the strength and timing accuracy of the various symmetry in combination with all of the tools such as Pi, Fib, and Square Root levels in both price and time.
There is a 3 day cluster of some minor Fib time symmetry next week, in addition to the O/B condition, so the market is obviously vulnerable to a pullback, despite new highs, unless the Fed`s POMO is very aggressive the next 4 trading days. Look for a reversal day and hook down in the 5 RSI indicator on the daily chart as there is no negative 5 RSI divergence, so O/B can get easily get a little more O/B.
Implied Volatility made new 52 week lows last week, and the best day trading opportunities are those with defined strategy setups, which you can see by taking a free 1 week trial to my Trading Service.
You can download for free 6 of my calculators that I use to measure price and time symmetry at www.geometricmarkets.com, and my new 200+ page manual “Markets Trade With Geometric Symmetry” is also available for purchase on the site. It doesn`t matter whether you are a trader, investor, portfolio manager, or analyst, because this product will enable you to pinpoint high probability reversal or acceleration zones in any market, including Stocks, Bonds, Commodities, and Currencies.
Have a good trading day!
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