Last June (2014), I made a post stating the following:
"This blog still gets a fair number of visitors every month, which is why I leave it up. Even though the charts are a few years old, the strategies are still just as applicable. They worked long before I came along, and they will work long after I am gone.
That is the good thing about understanding price movement and technical analysis - it works a lot better than chasing new stuff and bouncing around from method to method."
I went on to analyze the Nasdaq chart and said:
"If price can take out the March high, it should move to the 38.2% extension of the February 5 to the March 7 up move* (which would be approximately 4,534)."
Looking back, you can see that price made a run at 4,534 in July, but it hit resistance at the 4,500 level (as price tends to do at whole numbers).
It made another attempt and failed, but both times it pulled back to support at the March high and bounced (previous resistance was now support...as tends to happen).
At the beginning of September, it finally broke through 4,500 and hit my target (actually, it exceeded my target by around 60 points). Price then promptly collapsed, falling back to the 4,214 mark.
What was the significance of 4,214? It was the 61.8% retracement of the April low to the most recent high (it actually exceeded the 61.8% retracement by 14 points...so, ALMOST exact!)
My point? This stuff works - it always has, it always will. That's why I leave this blog up.
Price now sits just above the 38.2% extension of the up move from April to September 2014. Make of that what you will...
See you in another year or so. Take care!
Market Recap May 2, 2016
10 hours ago