Charts of Interest

Repeatedly Finding Order and Symmetry Where Most Only Perceive Chaos

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From this Week's Emerging Market Country ETF Study $QAT iShares MSCI Qatar ETF

From this Week's Emerging Market Country ETF Study $QAT iShares MSCI Qatar ETF

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From Today’s Weekly Index and Sector EFT Study….

From Today’s Weekly Index and Sector EFT Study….

BBDXY just hanging on to the Median Line of the longer term Schiff Pitchfork and the bottom of the cloud. Not a surprise… Fisher Transform cyclic bottom? We will see if it can retake the ground above Median Line of Standard Pitchfork (red dotted line).

BBDXY just hanging on to the Median Line of the longer term Schiff Pitchfork and the bottom of the cloud. Not a surprise… Fisher Transform cyclic bottom? We will see if it can retake the ground above Median Line of Standard Pitchfork (red dotted line).

Although there has been a recover in the 240-Emini since yesterday’s mid-afternoon lows yesterday (we suspect the bottom of a third wave) we view that recovery rally as a 4th wave prior to lower lows. Measured target 2,685.96. Only a move back through the Median line of the Standard Pitchfork (red dotted line) would negate that target. Note higher low in Optex Bands and RSI at price lows.

Although there has been a recover in the 240-Emini since yesterday’s mid-afternoon lows yesterday (we suspect the bottom of a third wave) we view that recovery rally as a 4th wave prior to lower lows. Measured target 2,685.96. Only a move back through the Median line of the Standard Pitchfork (red dotted line) would negate that target. Note higher low in Optex Bands and RSI at price lows.

NYSE Index (NYA) held where it had to yesterday (at the Lower Parallel of the Schiff Pitchfork on a closing basis but to be declared "out of the woods" it needs to retake the ground above the Kijun and Median Line.

NYSE Index (NYA) held where it had to yesterday (at the Lower Parallel of the Schiff Pitchfork on a closing basis but to be declared "out of the woods" it needs to retake the ground above the Kijun and Median Line.

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Interpreting the Total ETF Ranking : The TER Indicator is a total of the 30 ETF rankings and can be looked at as a confirmation/divergence tool and as an overbought/oversold indicator. As a confirmation/divergence tool, If the broader market as measured by the S&P 500 Index (SPX) continues to rally without a commensurate move in the TER the continuation of the rally is in jeopardy and if the SPX establishes a lower low and there is little change and or an improvement in the TER a positive divergence is registered. As and overbought/ oversold indicator the closer the TER gets to the 1500 level (“things can’t get any better”) the more the chance of a pullback in the SPX, conversely, the closer the TER gets to an extreme low (“things can’t get much worse”) an over sold rally will likely unfold.

Interpreting the Total ETF Ranking: The TER Indicator is a total of the 30 ETF rankings and can be looked at as a confirmation/divergence tool and as an overbought/oversold indicator. As a confirmation/divergence tool, If the broader market as measured by the S&P 500 Index (SPX) continues to rally without a commensurate move in the TER the continuation of the rally is in jeopardy and if the SPX establishes a lower low and there is little change and or an improvement in the TER a positive divergence is registered. As and overbought/ oversold indicator the closer the TER gets to the 1500 level (“things can’t get any better”) the more the chance of a pullback in the SPX, conversely, the closer the TER gets to an extreme low (“things can’t get much worse”) an over sold rally will likely unfold.

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240- Minute BBDXY. Price was unable to break above and hold onto the ground above the shorter term Pitchfork's Upper Parallel (blue) on Monday and Tuesday and broke support at the Lower Parallel of the longer term Pitchfork (red) and now has fallen through the cloud confirming that counter trend rally has run its course and the second leg lower is in gear.

240- Minute BBDXY. Price was unable to break above and hold onto the ground above the shorter term Pitchfork's Upper Parallel (blue) on Monday and Tuesday and broke support at the Lower Parallel of the longer term Pitchfork (red) and now has fallen through the cloud confirming that counter trend rally has run its course and the second leg lower is in gear.

The price advance of the Daily Dow Jones Transportation Average that found its genesis in early July has been capped again at the Upper Parallel of the Schiff Pitchfork (solid brown line) and the vector of the “Fork” finds confirmation in the confinement of the Cloud in between the Median Line (brown dotted line) and the lower Parallel (lower solid brown line) since the middle of May. The second “M” pattern developing in the Fisher Transform and the double non-confirmation of MACD (red dashed line) of the new highs in price suggest the path of least resistance is lower. Further confirmation would be a break of support at the Upper Parallel by the Lagging Line (blue line). Initial support should develop at the Kijun Line and second at the Median Line.

The price advance of the Daily Dow Jones Transportation Average that found its genesis in early July has been capped again at the Upper Parallel of the Schiff Pitchfork (solid brown line) and the vector of the “Fork” finds confirmation in the confinement of the Cloud in between the Median Line (brown dotted line) and the lower Parallel (lower solid brown line) since the middle of May. The second “M” pattern developing in the Fisher Transform and the double non-confirmation of MACD (red dashed line) of the new highs in price suggest the path of least resistance is lower. Further confirmation would be a break of support at the Upper Parallel by the Lagging Line (blue line). Initial support should develop at the Kijun Line and second at the Median Line.

From Today's Weekly Speculator...

From Today's Weekly Speculator...

BBDXY is heading to support at the bottom of the cloud and potentially to the Lower Parallel of the Pitchfork and our retracement target of 1,165 .

BBDXY is heading to support at the bottom of the cloud and potentially to the Lower Parallel of the Pitchfork and our retracement target of 1,165.

The 240 minute front month $Emini futures contract chart sports a few interesting technical features. The ES1 notched a new recovery high yesterday morning before the price reversal at the Median Line of the Schiff Pitchfork (gold dotted line) in concert with a failure of the Lagging line (blue line) at the Upper Parallel (solid gold line). Prices fell through the Lower Parallel (solid purple) during the next 240-minute period but found support at the Kijun Line (red line)and the 38.2 retracement support of the rally off last week’s lows but has been unable to re-take the ground above the broken Lower Parallel. The Lagging Line pierced the Median Line and has stalled under it. This suggests that price is still respecting the angle, or frequency, in the price time grid delineated by the Schiff Pitchfork first drawn in early July. Price is trapped between resistance at the Lower Parallel and Tekan Line (solid green) on the upside and support at the Kijun Line below. We believe when prices are released from this coiling trap and they will run hard and fast to the next level whether it to the Lower Warning Line (gold dashed line) or back to the Median Line. Unfortunately there is nary a clue as to direction yet.

The 240 minute front month $Emini futures contract chart sports a few interesting technical features. The ES1 notched a new recovery high yesterday morning before the price reversal at the Median Line of the Schiff Pitchfork (gold dotted line) in concert with a failure of the Lagging line (blue line) at the Upper Parallel (solid gold line). Prices fell through the Lower Parallel (solid purple) during the next 240-minute period but found support at the Kijun Line (red line)and the 38.2 retracement support of the rally off last week’s lows but has been unable to re-take the ground above the broken Lower Parallel. The Lagging Line pierced the Median Line and has stalled under it. This suggests that price is still respecting the angle, or frequency, in the price time grid delineated by the Schiff Pitchfork first drawn in early July. Price is trapped between resistance at the Lower Parallel and Tekan Line (solid green) on the upside and support at the Kijun Line below. We believe when prices are released from this coiling trap and they will run hard and fast to the next level whether it to the Lower Warning Line (gold dashed line) or back to the Median Line. Unfortunately there is nary a clue as to direction yet.

It may bounce here at the Median Line of the Standard Pitchfork and the top of the cloud but before its over 1,165 should be visited.

It may bounce here at the Median Line of the Standard Pitchfork and the top of the cloud but before its over 1,165 should be visited.

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The front month WTI futures contract has held the Lower Parallel of the Schiff Modified Pitchfork (solid green line) but the Lagging Line can't manage to retake the ground above the Median Line of the Standard Pitchfork (dotted red line). That said there is a hint of a turn in price momentum in the three momentum oscillators below, but it is still too early to call an end of the current price pullback.

The front month WTI futures contract has held the Lower Parallel of the Schiff Modified Pitchfork (solid green line) but the Lagging Line can't manage to retake the ground above the Median Line of the Standard Pitchfork (dotted red line). That said there is a hint of a turn in price momentum in the three momentum oscillators below, but it is still too early to call an end of the current price pullback.

A Selection From This Week's ETF Study

A Selection From This Week's ETF Study

After first re-gaining the ground above the Cloud on May 10th prices failed to reach the Upper Parallel of the Schiff Modified Pitchfork (green) two days later. This is noted with first red arrow. That failure produced an evening star reversal pattern suggesting that a re-test of cloud support and the Kijun Line (solid red line) was in the cards. It held that level (first yellow circle) and made a second attempt to rally above Schiff Modified Pitchfork and failed again (second red arrow)and pulled back and to find support at the cloud and the Upper Warning Line (brown dashed line) of the longer term Schiff Pitchfork (second yellow circle) . That pivot at a slightly higher low allowed the addition of the newer Standard Pitchfork (dark gray). That rally failed at dual Pitchfork resistance (third red arrow). Prices pulled back to the Lower Parallel of the Standard Pitchfork but ensuing railed again (fourth red arrow) but failed again and Friday’s -20.30 point or -0.70% selloff drove price back to the Lower Parallel of the Standard Pitchfork. The Lagging Line thus far has held support (green arrows) but if it breaks that support and prices break support at the Lower Parallel and can’t hold the confluence of support at the Kijun (red line) and Median Line (green dotted line). Prices are headed back to the top of the cloud and the lower Parallel of the Schiff Modified Pitchfork which is nearly 100 points lower. Noting the position of the three momentum oscillators this becomes a distinct possibility.

After first re-gaining the ground above the Cloud on May 10th prices failed to reach the Upper Parallel of the Schiff Modified Pitchfork (green) two days later. This is noted with first red arrow. That failure produced an evening star reversal pattern suggesting that a re-test of cloud support and the Kijun Line (solid red line) was in the cards. It held that level (first yellow circle) and made a second attempt to rally above Schiff Modified Pitchfork and failed again (second red arrow)and pulled back and to find support at the cloud and the Upper Warning Line (brown dashed line) of the longer term Schiff Pitchfork (second yellow circle) . That pivot at a slightly higher low allowed the addition of the newer Standard Pitchfork (dark gray). That rally failed at dual Pitchfork resistance (third red arrow). Prices pulled back to the Lower Parallel of the Standard Pitchfork but ensuing railed again (fourth red arrow) but failed again and Friday’s -20.30 point or -0.70% selloff drove price back to the Lower Parallel of the Standard Pitchfork. The Lagging Line thus far has held support (green arrows) but if it breaks that support and prices break support at the Lower Parallel and can’t hold the confluence of support at the Kijun (red line) and Median Line (green dotted line). Prices are headed back to the top of the cloud and the lower Parallel of the Schiff Modified Pitchfork which is nearly 100 points lower. Noting the position of the three momentum oscillators this becomes a distinct possibility.

A number of positive technical features have developed over the past few days in Gold in Aussie Dollars. Prices overtook the Upper Parallel of the Standard Pitchfork, the unbridled Composite Index diverged from the new low in RSI, the Derivative Oscillator produced a buy signal and the Fisher Transform turned at a higher low through its signal line. Next hurdle will be at the Kijun Line where it found resistance today.

A number of positive technical features have developed over the past few days in Gold in Aussie Dollars. Prices overtook the Upper Parallel of the Standard Pitchfork, the unbridled Composite Index diverged from the new low in RSI, the Derivative Oscillator produced a buy signal and the Fisher Transform turned at a higher low through its signal line. Next hurdle will be at the Kijun Line where it found resistance today.

The front month WTI crude oil futures held support at the Median Line of the Standard Pitchfork (red dotted line) and the Lower Parallel of the Schiff Modified Pitchfork (solid green line) drawn from the same pivots and prices are “climbing the cloud”. Next hurdle is the Kijun Line (solid red line).

The front month WTI crude oil futures held support at the Median Line of the Standard Pitchfork (red dotted line) and the Lower Parallel of the Schiff Modified Pitchfork (solid green line) drawn from the same pivots and prices are “climbing the cloud”. Next hurdle is the Kijun Line (solid red line).

ETF featued in this week's Weekly ETF Study

ETF featued in this week's Weekly ETF Study

Follow Up: TRUMPED! Take a deteriorating technical condition and add a heavy dose of misguided comments and this is what you get. A break of support at the lower parallel of the shorter term Standard Pitchfork with momentum rolling over. Bulls should hope the DXY doesnt fall through the cloud.

Follow Up: TRUMPED! Take a deteriorating technical condition and add a heavy dose of misguided comments and this is what you get. A break of support at the lower parallel of the shorter term Standard Pitchfork with momentum rolling over. Bulls should hope the DXY doesnt fall through the cloud.

The Median Line of the shorter term Standard pitchfork continues to cap the grind higher in the SPX. Of more technical concern is the potential "hidden sell" (non-confirmation) of Constance Brown's Composite Index of the highs in RSI.

The Median Line of the shorter term Standard pitchfork continues to cap the grind higher in the SPX. Of more technical concern is the potential "hidden sell" (non-confirmation) of Constance Brown's Composite Index of the highs in RSI.

Alot of interesting things happening here technically. Prices have failed again the Sliding Parallel and the lagging line has failed underneth the Lower Parallel of the Schiff Adjusted Pitchfork in concert with the Optuma Optex Bands reaching overbought.

Alot of interesting things happening here technically. Prices have failed again the Sliding Parallel and the lagging line has failed underneth the Lower Parallel of the Schiff Adjusted Pitchfork in concert with the Optuma Optex Bands reaching overbought.

One of three ETFs featured in this week's Weekly ETF Study

One of three ETFs featured in this week's Weekly ETF Study

It appear that Raytheon has completed a Elliot Wave three wave decline (Zig/Zag). It is not a surprise that it stalled at the highs today at a .382 retracement of the decline. For those who need further confirmation a continuation of the rally through confluence of resistance at the Standard Pitchforks Median Line (red dashed line), the Upper Parallel of the Schiff Pitchfork (light brown line) and the .618 retracement of the selloff at the yellow circle would confirm this technical thesis. Note how the lagging line (blue) found support at the Lower Parallel of the Schiff Pitchfork and the turn in MACD.

It appear that Raytheon has completed a Elliot Wave three wave decline (Zig/Zag). It is not a surprise that it stalled at the highs today at a .382 retracement of the decline. For those who need further confirmation a continuation of the rally through confluence of resistance at the Standard Pitchforks Median Line (red dashed line), the Upper Parallel of the Schiff Pitchfork (light brown line) and the .618 retracement of the selloff at the yellow circle would confirm this technical thesis. Note how the lagging line (blue) found support at the Lower Parallel of the Schiff Pitchfork and the turn in MACD.

We still think the E-Mini can notch a new high but it must hold the triple confluence of support at the Kijun Line, Tenkan Line and the Median Line of Schiff Modified Pitchfork (green dotted line) as well as the Lower Parallel of the shorter term Standard Pitchfork (red line)

We still think the E-Mini can notch a new high but it must hold the triple confluence of support at the Kijun Line, Tenkan Line and the Median Line of Schiff Modified Pitchfork (green dotted line) as well as the Lower Parallel of the shorter term Standard Pitchfork (red line)

S&P 500 Index remains capped at the Upper Parallel of the Schiff Modified Pitchfork (green)

S&P 500 Index remains capped at the Upper Parallel of the Schiff Modified Pitchfork (green)

This Weeks ETF Highlight : REMX

This Weeks ETF Highlight : REMX

A third attempt to rally through the Median Line of the Schiff Modified Pitch fork failed early in the overnight session and the ESA is back to challenging the confluence of support.

A third attempt to rally through the Median Line of the Schiff Modified Pitch fork failed early in the overnight session and the ESA is back to challenging the confluence of support.

Little question as to where price resistance is in the NYA Index

Little question as to where price resistance is in the NYA Index

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This Week ETF Technical Highlight : FXL

 

It may be too early to call the DXY rally over but we cannot ignore the non-confirmation of the Composite Index of the higher high in RSI or dual Pitchfork resistance.

It may be too early to call the DXY rally over but we cannot ignore the non-confirmation of the Composite Index of the higher high in RSI or dual Pitchfork resistance.

Resistance at the Median Line of the short term Schiff Modified Pitchfork and the bottom of the Cloud slow the follow through from Friday's rally in the  # Emini

Resistance at the Median Line of the short term Schiff Modified Pitchfork and the bottom of the Cloud slow the follow through from Friday's rally in the #Emini

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This Week's ETF Study Highlight : XRT

This Week's ETF Study Highlight : XRT

Heading for the twist in the cloud

Heading for the twist in the cloud

March 23, 2018, Revisiting Copper  Like the Pinball machine declares "Game Over" as prices break the lower Parallel of the Schiff Modified Pitchfork. Next line of defense is the Senkou Span A (top of the cloud) and second the Lower Warning Line (dashed green line).

March 23, 2018, Revisiting Copper Like the Pinball machine declares "Game Over" as prices break the lower Parallel of the Schiff Modified Pitchfork. Next line of defense is the Senkou Span A (top of the cloud) and second the Lower Warning Line (dashed green line).

March 20, 1918  After breaking support at the Kijun Sen (Standard Line in red) copper prices are teetering on support afforded by the Lower Parallel of the Schiff Modified Pitchfork. If copper can not end the week above this line next stop will be the top of the cloud which is currently at 6430.00 (aprox)

March 20, 1918 After breaking support at the Kijun Sen (Standard Line in red) copper prices are teetering on support afforded by the Lower Parallel of the Schiff Modified Pitchfork. If copper can not end the week above this line next stop will be the top of the cloud which is currently at 6430.00 (aprox)

Price support at the Sliding Parallel of the Schiff Adjusted Pitchfork (blue dashed line) has come into play again as it did last week when the Kijun-Sen (Standard Line in red) tagged it and held. The Lagging Line (in solid Blue) has held support at the Median Line (light brown dashed line) just recently and back in late February. These technical features give us confidence that we have pegged the correct frequency on the price grid on the hourly chart of the SPX Index. We are waiting patiently to see if the ground above the Lower Parallel of the Pitchfork (solid brown line) and the Kijun-Sen can be re-taken.

Price support at the Sliding Parallel of the Schiff Adjusted Pitchfork (blue dashed line) has come into play again as it did last week when the Kijun-Sen (Standard Line in red) tagged it and held. The Lagging Line (in solid Blue) has held support at the Median Line (light brown dashed line) just recently and back in late February. These technical features give us confidence that we have pegged the correct frequency on the price grid on the hourly chart of the SPX Index. We are waiting patiently to see if the ground above the Lower Parallel of the Pitchfork (solid brown line) and the Kijun-Sen can be re-taken.

March 6, 2018  DXY Follow up...We would normally never leave more than two Median Line studies on a chart as it tends to overwhelm the “picture”, but in this case the validity of the two older pitchforks and their continued ability to identify the frequency of the price grid influenced our decision to leave them in place. An attempt to retake the ground above the Median Line of the Standard Pitchfork (red dashed line) yesterday and today (at the time of writing, 9AM) the index has traded back through the Lower Parallel of the Schiff Modified Pitchfork (solid green line) and is squaring off with support at the Kijun Line (red line). Our sense is if the DXY can’t find its way back above the Median Line of the Standard Pitchfork (red dashed line), the Upper Parallel of the new Standard Pitchfork (solid purple line) and resistance at the cloud, all of which will be a tough road to hoe, that odds favor a new low in the DXY. That said it will be a gift to the bulls because it will likely be significant low (see our earlier post).

March 6, 2018 DXY Follow up...We would normally never leave more than two Median Line studies on a chart as it tends to overwhelm the “picture”, but in this case the validity of the two older pitchforks and their continued ability to identify the frequency of the price grid influenced our decision to leave them in place. An attempt to retake the ground above the Median Line of the Standard Pitchfork (red dashed line) yesterday and today (at the time of writing, 9AM) the index has traded back through the Lower Parallel of the Schiff Modified Pitchfork (solid green line) and is squaring off with support at the Kijun Line (red line). Our sense is if the DXY can’t find its way back above the Median Line of the Standard Pitchfork (red dashed line), the Upper Parallel of the new Standard Pitchfork (solid purple line) and resistance at the cloud, all of which will be a tough road to hoe, that odds favor a new low in the DXY. That said it will be a gift to the bulls because it will likely be significant low (see our earlier post).

March 2, 2018  The rally in the DXY was capped by Upper Parallel of the Schiff Modified Pitchfork (solid green line) and the falling cloud yesterday suggesting the 3 wave counter trend 4th wave rally has reached its terminus. If this is the correct technical thesis at the very least a test of the February 16th lows is in the cards. A new Standard Pitchfork had been added to our daily DXY chart and the Median Line (red dotted line) was broken today adding credence to our argument. Keeping this all in the context of the bigger picture, if this marked the end of a fourth wave of a minor degree US Dollar bears should remain alert to a the possibility that a significant low in the DXY will be established in the days to come.

March 2, 2018 The rally in the DXY was capped by Upper Parallel of the Schiff Modified Pitchfork (solid green line) and the falling cloud yesterday suggesting the 3 wave counter trend 4th wave rally has reached its terminus. If this is the correct technical thesis at the very least a test of the February 16th lows is in the cards. A new Standard Pitchfork had been added to our daily DXY chart and the Median Line (red dotted line) was broken today adding credence to our argument. Keeping this all in the context of the bigger picture, if this marked the end of a fourth wave of a minor degree US Dollar bears should remain alert to a the possibility that a significant low in the DXY will be established in the days to come.

March 1, 2018  The E-Mini fell through support offered by the Median Line of the Schiff Adjusted Pitchfork (brown dashed line) and both the Kijun Sen (red line) and Tenkan Sen (green line) yesterday on the 240-min cloud chart. During the overnight session and this morning support has been found at the Lower Parallel (solid brown line) and the cloud but we expect that support to be impermanent.

March 1, 2018 The E-Mini fell through support offered by the Median Line of the Schiff Adjusted Pitchfork (brown dashed line) and both the Kijun Sen (red line) and Tenkan Sen (green line) yesterday on the 240-min cloud chart. During the overnight session and this morning support has been found at the Lower Parallel (solid brown line) and the cloud but we expect that support to be impermanent.

February 26, 2018  The Russian RTS Index raps its head at the Upper Parallel of the Schiff Modified Pitchfork and briefly pulls back but nonetheless the Index establishes a new recovery high.

February 26, 2018 The Russian RTS Index raps its head at the Upper Parallel of the Schiff Modified Pitchfork and briefly pulls back but nonetheless the Index establishes a new recovery high.

February 22, 2018  Prices on the weekly VNQ find support 2 times at the Median Line of the Standard Pitchfork and the Lower Parallel of the Schiff Adjust Pitchfork. Looks like the start of a fourth wave.

February 22, 2018 Prices on the weekly VNQ find support 2 times at the Median Line of the Standard Pitchfork and the Lower Parallel of the Schiff Adjust Pitchfork. Looks like the start of a fourth wave.

February 21, 2018  Daily E-Mini prices have found support at the Kijun Sen (red line) over the past two days and resistance at the Upper Parallel of the newly drawn Schiff Modified Pitchfork. A violation of either of these will likely give us a clue as to whether the rally from the lows has run its course or a nominal new high is in the cards

February 21, 2018 Daily E-Mini prices have found support at the Kijun Sen (red line) over the past two days and resistance at the Upper Parallel of the newly drawn Schiff Modified Pitchfork. A violation of either of these will likely give us a clue as to whether the rally from the lows has run its course or a nominal new high is in the cards

February 15, 2018  The NASDAQ 100 rally is still respecting the price grid realized by the two Schiff Adjusted Pitchforks and has just about reached a 61.8 retrace of the selloff which also aligns with the bottom of the 240-Minute cloud but without a hint of price momentum slowing and what appears to be an incomplete price structure the high tech index could push into the cloud but will likely find resistance Upper Parallel of the longer term Schiff Adjusted Pitchfork.

February 15, 2018 The NASDAQ 100 rally is still respecting the price grid realized by the two Schiff Adjusted Pitchforks and has just about reached a 61.8 retrace of the selloff which also aligns with the bottom of the 240-Minute cloud but without a hint of price momentum slowing and what appears to be an incomplete price structure the high tech index could push into the cloud but will likely find resistance Upper Parallel of the longer term Schiff Adjusted Pitchfork.

February 14, 2018  Further Follow up...The DXY rally failed this morning at the Lower Warning Line of the longer term Schiff Adjusted Pitchfork (brown dashed line) violated potential support at the Tenken Sen (Turning Line in light green) and is now probing support at the Lower Parallel of the shorter term Schiff Modified Pitchfork (heavy solid dark green line). The Slow Stochastic is accelerating lower. If it can’t hold confluence support (blue rectangle) odds favor a test of the recent price lows.

February 14, 2018 Further Follow up...The DXY rally failed this morning at the Lower Warning Line of the longer term Schiff Adjusted Pitchfork (brown dashed line) violated potential support at the Tenken Sen (Turning Line in light green) and is now probing support at the Lower Parallel of the shorter term Schiff Modified Pitchfork (heavy solid dark green line). The Slow Stochastic is accelerating lower. If it can’t hold confluence support (blue rectangle) odds favor a test of the recent price lows.

February 13, 2018  Follow up to last weeks post...The cluster of resistance that we referred to last week (highlighted with yellow circle) did end up being a stiff barrier to a further advance of the counter trend move in the DXY. In particular the Kijun Sen (Standard Line in Red) was the line in the sand that prices couldn’t overtake and the DXY remains trapped in the Schiff Modified Pitchfork (green).

February 13, 2018 Follow up to last weeks post...The cluster of resistance that we referred to last week (highlighted with yellow circle) did end up being a stiff barrier to a further advance of the counter trend move in the DXY. In particular the Kijun Sen (Standard Line in Red) was the line in the sand that prices couldn’t overtake and the DXY remains trapped in the Schiff Modified Pitchfork (green).

February 9, 2018  Still a lot of rivers to cross and mountains to climb. Find it hard to believe it can put in a sustainable low on a Friday after the week we have witnessed despite the fact the wave structure looks almost complete.

February 9, 2018 Still a lot of rivers to cross and mountains to climb. Find it hard to believe it can put in a sustainable low on a Friday after the week we have witnessed despite the fact the wave structure looks almost complete.

No question the DXY has the wind at its back as witnessed by the upward track in the Slow Stochastic (lower panel) but the greenback is entering a confluence of resistance (yellow circle) afforded by the Lower Warning Line of the longer term Schiff Adjusted Pitchfork (dashed light brown line), the Median Line of the shorter term Schiff Adjusted Pitchfork (green dotted line), The flattening Kijun Sen (Standard Line in red) and a previous price consolidation area. Only a move through all four obstacles and the Upper Parallel of the shorter term Schiff Modified Pitchfork (solid green line) would suggest a counter trend move of a larger degree might be underway.

No question the DXY has the wind at its back as witnessed by the upward track in the Slow Stochastic (lower panel) but the greenback is entering a confluence of resistance (yellow circle) afforded by the Lower Warning Line of the longer term Schiff Adjusted Pitchfork (dashed light brown line), the Median Line of the shorter term Schiff Adjusted Pitchfork (green dotted line), The flattening Kijun Sen (Standard Line in red) and a previous price consolidation area. Only a move through all four obstacles and the Upper Parallel of the shorter term Schiff Modified Pitchfork (solid green line) would suggest a counter trend move of a larger degree might be underway.

February 7, 2018  Almost right on cue...

February 7, 2018 Almost right on cue...

February 2, 2018,  Follow Up...Despite two attempts to regain the ground in the cloud and hesitantly holding the Lower Parallel of the Schiff Modified Pitchfork yesterday, prices on the hourly E-Mini Active Futures Contract broke down at 3AM this morning through the Lower Parallel (solid green) until finding a measure of support at the Lower Warning Line (dashed green Line). Downside momentum as measured by both RSI and the Slow Stochastic slowed as prices kissed the Warning Line but it will take either a positive surprise in the form of economic data or more price “work” before the E-Mini Futures will be able to re-take the ground above the Lower Parallel and the Cloud.

February 2, 2018, Follow Up...Despite two attempts to regain the ground in the cloud and hesitantly holding the Lower Parallel of the Schiff Modified Pitchfork yesterday, prices on the hourly E-Mini Active Futures Contract broke down at 3AM this morning through the Lower Parallel (solid green) until finding a measure of support at the Lower Warning Line (dashed green Line). Downside momentum as measured by both RSI and the Slow Stochastic slowed as prices kissed the Warning Line but it will take either a positive surprise in the form of economic data or more price “work” before the E-Mini Futures will be able to re-take the ground above the Lower Parallel and the Cloud.

February 1, 2018  Copper prices as measured by the CME front month futures contract have held above the cloud since trading back above it in mid-December and after a brief touch of the Senkou Span A in October and again in December the Lagging Line is tracking above the cloud. Prices have been coiling between the Kijun Sen (Turning line in green) and the Tenkan Sen (Turning line in red) at just below the Upper Parallel of the Standard Pitchfork and held above the not only the cloud but never reached the Median Line (red dotted line). The Composite Index (tip of the hat to Connie Brown, its developer) has produced a hidden buy by not reaching a lower low when RSI did during Tuesday’s nasty trading session and Wednesday copper recouped the previous days loses and then some. Better than even odds the late December highs will be challenged?

February 1, 2018 Copper prices as measured by the CME front month futures contract have held above the cloud since trading back above it in mid-December and after a brief touch of the Senkou Span A in October and again in December the Lagging Line is tracking above the cloud. Prices have been coiling between the Kijun Sen (Turning line in green) and the Tenkan Sen (Turning line in red) at just below the Upper Parallel of the Standard Pitchfork and held above the not only the cloud but never reached the Median Line (red dotted line). The Composite Index (tip of the hat to Connie Brown, its developer) has produced a hidden buy by not reaching a lower low when RSI did during Tuesday’s nasty trading session and Wednesday copper recouped the previous days loses and then some. Better than even odds the late December highs will be challenged?

February 1, 2018  With both the Lagging Line and price falling through the Lower Parallel of the Schiff Modified Pitchfork on the hourly E-Mini Active Futures Contract it will be difficult for the bulls to cobble together much of a rally with well-defined resistance at the Kijun Sen (red standard line), bottom of the cloud and Median Line at the 2825-2830 zone.

February 1, 2018 With both the Lagging Line and price falling through the Lower Parallel of the Schiff Modified Pitchfork on the hourly E-Mini Active Futures Contract it will be difficult for the bulls to cobble together much of a rally with well-defined resistance at the Kijun Sen (red standard line), bottom of the cloud and Median Line at the 2825-2830 zone.

January 31, 2018  The DXY stabilized yesterday but was unable to gain significant ground and make it back to the Median Line of the Standard Pitchfork (red dotted line) or on an hourly basis close back above the Kijun Sen (red line) which is back below the cloud in concert with price and the Lagging Line (blue). On this morning’s chart we have added a falling Schiff Adjusted Pitchfork (orange) which has contained rally attempts since 11AM yesterday. There hasn’t been any improvement in momentum as measured by 14-period RSI which remains trapped below its longer term moving average and now its shorter term moving average and the Slow Stochastic has rolled over.

January 31, 2018 The DXY stabilized yesterday but was unable to gain significant ground and make it back to the Median Line of the Standard Pitchfork (red dotted line) or on an hourly basis close back above the Kijun Sen (red line) which is back below the cloud in concert with price and the Lagging Line (blue). On this morning’s chart we have added a falling Schiff Adjusted Pitchfork (orange) which has contained rally attempts since 11AM yesterday. There hasn’t been any improvement in momentum as measured by 14-period RSI which remains trapped below its longer term moving average and now its shorter term moving average and the Slow Stochastic has rolled over.

January 30, 2018  The E-Mini fell through support afforded by the Kijun Span (red line) for the first time since the beginning of January and then violated support at the Lower Parallel of the Schiff Modified Pitchfork (green line) last evening. The Lagging Line (blue) has fallen through support at the Upper Parallel. Since then the E-Mini has been unable to retake the ground within the Pitchfork. Neither the Slow Stochastic or 14-period RSI on the 240-Minute chart suggests that the corrective phase has run its course.

January 30, 2018 The E-Mini fell through support afforded by the Kijun Span (red line) for the first time since the beginning of January and then violated support at the Lower Parallel of the Schiff Modified Pitchfork (green line) last evening. The Lagging Line (blue) has fallen through support at the Upper Parallel. Since then the E-Mini has been unable to retake the ground within the Pitchfork. Neither the Slow Stochastic or 14-period RSI on the 240-Minute chart suggests that the corrective phase has run its course.

January 30, 2018  After holding support at the Median Line of the Standard Pitchfork (red dotted line) and the Kijun Sen (Standard Line in red) for all of yesterday, prices fell through that support this AM until finding temporary support at the Lower Parallel of the Pitchfork and the bottom confines of the Cloud at the Senkou Span B. The Lagging Line (Blue) has fallen through the cloud after failing to advance above the Upper Parallel of the Standard Pitchfork. RSI had held above its longer term moving average during numerous tests during the counter trend move that started last Thursday but has fallen through early this morning and currently the shorter term moving average is tracking below the longer term moving average.

January 30, 2018 After holding support at the Median Line of the Standard Pitchfork (red dotted line) and the Kijun Sen (Standard Line in red) for all of yesterday, prices fell through that support this AM until finding temporary support at the Lower Parallel of the Pitchfork and the bottom confines of the Cloud at the Senkou Span B. The Lagging Line (Blue) has fallen through the cloud after failing to advance above the Upper Parallel of the Standard Pitchfork. RSI had held above its longer term moving average during numerous tests during the counter trend move that started last Thursday but has fallen through early this morning and currently the shorter term moving average is tracking below the longer term moving average.

January 29, 2018  After briefly re-entering the cloud during the second week of January the MEXBOL Index has climbed steadily within the confines of the Schiff Modified Pitchfork. Last Thursday prices challenged the Upper Parallel again and on Friday the index tested support at the Median Line and regained almost all of its lost ground on the day. The Kijun Sen (Standard Line in red) is tracking above the Lower Parallel. The shorter Tenkan Sen (Turning Line in olive green) is tracking above the Kijun Sen, the Lagging Line (in blue) held a test of the Upper Parallel and all three are above the cloud in concert with price. Prices appear to be targeting last July’s all-time closing highs at 51,713.38.

January 29, 2018 After briefly re-entering the cloud during the second week of January the MEXBOL Index has climbed steadily within the confines of the Schiff Modified Pitchfork. Last Thursday prices challenged the Upper Parallel again and on Friday the index tested support at the Median Line and regained almost all of its lost ground on the day. The Kijun Sen (Standard Line in red) is tracking above the Lower Parallel. The shorter Tenkan Sen (Turning Line in olive green) is tracking above the Kijun Sen, the Lagging Line (in blue) held a test of the Upper Parallel and all three are above the cloud in concert with price. Prices appear to be targeting last July’s all-time closing highs at 51,713.38.

January 26, 2018  Trite expressions come to mind… “It isn’t over to it’s over”, “trying to jawbone currencies is like pushing on a string” but we will stick to the technicals. Support afforded by a 50% Fibonacci retracement level of the 2011/2017 rally and comments out of Davos led the DXY to rally sharply but the upper parallel of the Schiff Modified Pitchfork and the Kijun Span put a halt to the short squeeze and the DXY has since retreated. We have viewed the unfolding price action as a 4th wave prior to lower prices and that thesis has not changed. We still consider the 86.50 level and potentially the 84.50 level as reasonable targets before a rally of a larger degree unfolds

January 26, 2018 Trite expressions come to mind… “It isn’t over to it’s over”, “trying to jawbone currencies is like pushing on a string” but we will stick to the technicals. Support afforded by a 50% Fibonacci retracement level of the 2011/2017 rally and comments out of Davos led the DXY to rally sharply but the upper parallel of the Schiff Modified Pitchfork and the Kijun Span put a halt to the short squeeze and the DXY has since retreated. We have viewed the unfolding price action as a 4th wave prior to lower prices and that thesis has not changed. We still consider the 86.50 level and potentially the 84.50 level as reasonable targets before a rally of a larger degree unfolds

January 24, 2018  One now has to look to the monthly chart of the DXY for the next level of support. What becomes exposed is the support offered by the Kijun Sen (red line highlighted by orange dashed line) at 89.60 that has temporarily slowed the selloff in the greenback but the inability of the DXY to overtake the ground above the Median Line of the Standard Pitchfork (heavy dotted red line) and acceleration lower in price brings secondary support at the Lower Parallel (heavy solid line) and Lower Parallel of shorter term Pitchfork at 86.50 (highlighted by lower orange dotted line) into view.

January 24, 2018 One now has to look to the monthly chart of the DXY for the next level of support. What becomes exposed is the support offered by the Kijun Sen (red line highlighted by orange dashed line) at 89.60 that has temporarily slowed the selloff in the greenback but the inability of the DXY to overtake the ground above the Median Line of the Standard Pitchfork (heavy dotted red line) and acceleration lower in price brings secondary support at the Lower Parallel (heavy solid line) and Lower Parallel of shorter term Pitchfork at 86.50 (highlighted by lower orange dotted line) into view.

January 23, 2018  The Korea Stock Exchange KOSPI Index held above the cloud and during last night’s trading session the Index over took the Median Line of the Schiff Modified Pitchfork and closed above it. The Lagging Span (blue line) never entered the cloud and the Tenkan Span has left the cloud behind. More on Pitchforks @Optuma and #Ichimoku @karen

January 23, 2018 The Korea Stock Exchange KOSPI Index held above the cloud and during last night’s trading session the Index over took the Median Line of the Schiff Modified Pitchfork and closed above it. The Lagging Span (blue line) never entered the cloud and the Tenkan Span has left the cloud behind. More on Pitchforks @Optuma and #Ichimoku @karen

January 19, 2018  Recently we have read a few technical opinions that the DXY is bottoming and that the selloff in the greenback has reached its terminus. Followers of our posts on the DXY know that we have contended that the oversold rallies or any consolidations in the DXY have been counter trend in nature. That opinion has not changed. Granted the Index has found price support at 90.20/90.22 but continues to be contained by resistance at just below the 91 level. We have drawn a new shorter term Schiff Adjusted Pitchfork (orange)to the recent price pivots and up till now it has contained any price advance in concert with the Kijun Sen (solid red line) which is currently being tested. The true test of the “bottoming thesis” will come next week when the DXY will have to contend with a confluence of resistance at the ever widening cloud and multiple Warning Lines and price resistance ant the upper band of the consolidation pattern (blue rectangle).

January 19, 2018 Recently we have read a few technical opinions that the DXY is bottoming and that the selloff in the greenback has reached its terminus. Followers of our posts on the DXY know that we have contended that the oversold rallies or any consolidations in the DXY have been counter trend in nature. That opinion has not changed. Granted the Index has found price support at 90.20/90.22 but continues to be contained by resistance at just below the 91 level. We have drawn a new shorter term Schiff Adjusted Pitchfork (orange)to the recent price pivots and up till now it has contained any price advance in concert with the Kijun Sen (solid red line) which is currently being tested. The true test of the “bottoming thesis” will come next week when the DXY will have to contend with a confluence of resistance at the ever widening cloud and multiple Warning Lines and price resistance ant the upper band of the consolidation pattern (blue rectangle).

January 18, 2018  Crude oil’s accent has slowed but has held support at the Upper Parallel of the Schiff Modified Pitchfork (green). The Lagging Span blue) has been repelled by the 2nd Warning Line for a second time (first time was at September 29th of last year). That said, crude oil prices as measured by the generic front month futures contract remain above the cloud and the Kijun Sen (red) and are to a degree are being cradled by the Tenkan Sen (green) as they advanced higher. All these technical factors lead us to believe that although crude may have to revisit the Median Line of the Pitchfork (dotted green) before the current corrective phase is complete we do not believe this is the start of a correction of a larger degree.

January 18, 2018 Crude oil’s accent has slowed but has held support at the Upper Parallel of the Schiff Modified Pitchfork (green). The Lagging Span blue) has been repelled by the 2nd Warning Line for a second time (first time was at September 29th of last year). That said, crude oil prices as measured by the generic front month futures contract remain above the cloud and the Kijun Sen (red) and are to a degree are being cradled by the Tenkan Sen (green) as they advanced higher. All these technical factors lead us to believe that although crude may have to revisit the Median Line of the Pitchfork (dotted green) before the current corrective phase is complete we do not believe this is the start of a correction of a larger degree.

January 10, 2018  The DXY failed before reaching the upper Warning Line of the Schiff Modified Pitchfork and was repelled by the upper boundary of the 240-min Cloud and has fell without pause through the Kijun Line and is now back below the Cloud. The Chikou Line (lagging line in blue) has fallen through the lower Warning Line as well. The only minor positive is that the Median Line (dotted purple) seems to be offering a very temporary measure of support. That said we expect the lower Parallel to be tested at the very least and the recent price lows to be visited before the current leg lower produces a short term over sold bounce. Note the divergence in the Slow Stochastic that occurred at the recent high (red dashed line).

January 10, 2018 The DXY failed before reaching the upper Warning Line of the Schiff Modified Pitchfork and was repelled by the upper boundary of the 240-min Cloud and has fell without pause through the Kijun Line and is now back below the Cloud. The Chikou Line (lagging line in blue) has fallen through the lower Warning Line as well. The only minor positive is that the Median Line (dotted purple) seems to be offering a very temporary measure of support. That said we expect the lower Parallel to be tested at the very least and the recent price lows to be visited before the current leg lower produces a short term over sold bounce. Note the divergence in the Slow Stochastic that occurred at the recent high (red dashed line).

January 9, 2018 -  The Dow Jones Transportation Average is pressing up against the Upper Parallel of the Standard Pitchfork (red) which may offer a measure of resistance considering the position of the Slow Stochastic. That said the Index has been able to advance +9.5% since the oscillator first reached overbought territory in late November. All three key cloud lines are rising and are clear of the cloud and of particular technical interest is the support afforded by the Tenken (turning line) which has cradled price since mid- December when the Index left support at the Median Line (red dashed line) behind.

January 9, 2018 - The Dow Jones Transportation Average is pressing up against the Upper Parallel of the Standard Pitchfork (red) which may offer a measure of resistance considering the position of the Slow Stochastic. That said the Index has been able to advance +9.5% since the oscillator first reached overbought territory in late November. All three key cloud lines are rising and are clear of the cloud and of particular technical interest is the support afforded by the Tenken (turning line) which has cradled price since mid- December when the Index left support at the Median Line (red dashed line) behind.

January 9, 2018 -  The KOSPI Index edged through the upper span of the cloud for the first time since the last days of November on Friday. Since the start of this week both price and the Chikou (lagging line in blue) have tracked above the cloud until the Upper Parallel of the Schiff Adjust Pitchfork (in orange) and divergence with the slow stochastic (purple dashed line) has temporarily has stymied a further advance although prices have held the Median Line on a closing basis since then.

January 9, 2018 - The KOSPI Index edged through the upper span of the cloud for the first time since the last days of November on Friday. Since the start of this week both price and the Chikou (lagging line in blue) have tracked above the cloud until the Upper Parallel of the Schiff Adjust Pitchfork (in orange) and divergence with the slow stochastic (purple dashed line) has temporarily has stymied a further advance although prices have held the Median Line on a closing basis since then.

Late in the trading session on Friday the S&P 500 Index broke Median Line Support of the Schiff Modified Pitchfork (green dotted line) closing right on secondary support at the bottom of the Hourly Cloud at the close. Monday’s stronger opening drove prices through the Upper Cloud Span and the Upper Parallel of the Pitchfork ahead of the cloud “twist” to close at a record high just below a Sliding Parallel (blue dashed line) which has exhibited resistance in the recent past. This morning S&P 500 futures point to a firm opening. 1St Warning Line resistance is at the 2,703-2,704 level and may lead to consolidation in the very short term considering the position of the Slow Stochastic. This does not alter our longer term technical view

Late in the trading session on Friday the S&P 500 Index broke Median Line Support of the Schiff Modified Pitchfork (green dotted line) closing right on secondary support at the bottom of the Hourly Cloud at the close. Monday’s stronger opening drove prices through the Upper Cloud Span and the Upper Parallel of the Pitchfork ahead of the cloud “twist” to close at a record high just below a Sliding Parallel (blue dashed line) which has exhibited resistance in the recent past. This morning S&P 500 futures point to a firm opening. 1St Warning Line resistance is at the 2,703-2,704 level and may lead to consolidation in the very short term considering the position of the Slow Stochastic. This does not alter our longer term technical view

During the earlier morning hours of trading on Friday the DXY dropped through duel support of the Lower Parallel of the newly drawn Schiff Modified Pitchfork (purple) and the 2nd Upper Warning Line of the longer term Schiff Modified Pitchfork (green). These two pitchforks share the same angle/frequency. Short term support has been discovered at the 1st Upper Warning Line of longer term Pitchfork this morning. Despite the oversold condition reflected by the current position of the Slow Stochastic the series of lower highs in the oscillator remains intact and only an advance through the Lower Parallel of the newly drawn Pitchfork (purple) would suggest a counter trend rally was underway.

During the earlier morning hours of trading on Friday the DXY dropped through duel support of the Lower Parallel of the newly drawn Schiff Modified Pitchfork (purple) and the 2nd Upper Warning Line of the longer term Schiff Modified Pitchfork (green). These two pitchforks share the same angle/frequency. Short term support has been discovered at the 1st Upper Warning Line of longer term Pitchfork this morning. Despite the oversold condition reflected by the current position of the Slow Stochastic the series of lower highs in the oscillator remains intact and only an advance through the Lower Parallel of the newly drawn Pitchfork (purple) would suggest a counter trend rally was underway.

Follow up from yesterday's post on the DXY...After grinding sideways during New York trading hours, the DXY's decline resumed, puncturing our tageted support at the Lower Parallel of the Schiff Modified Pitchfork until finding secondary support at the 2nd Upper Parallel of the longer term Schiff Modified Pitchfork (note this is the third time this frequency has been respected over the past two weeks but an attempt to retake the ground within the confines of the shorter term pitchfork has been thwarted as of 8am NY time and the DXY remains pinned between the two markers.

Follow up from yesterday's post on the DXY...After grinding sideways during New York trading hours, the DXY's decline resumed, puncturing our tageted support at the Lower Parallel of the Schiff Modified Pitchfork until finding secondary support at the 2nd Upper Parallel of the longer term Schiff Modified Pitchfork (note this is the third time this frequency has been respected over the past two weeks but an attempt to retake the ground within the confines of the shorter term pitchfork has been thwarted as of 8am NY time and the DXY remains pinned between the two markers.

Yesterday morning's reversal in the DXY (that for all intents and purposes was a Bearish Engulfing Candle) turned lower once again at the Sliding Parallel (Blue dotted Line) of the Schiff Modified Pitchfork (Green). Prices are now targeting 92.85 at the Lower Parallel.

Yesterday morning's reversal in the DXY (that for all intents and purposes was a Bearish Engulfing Candle) turned lower once again at the Sliding Parallel (Blue dotted Line) of the Schiff Modified Pitchfork (Green). Prices are now targeting 92.85 at the Lower Parallel.

After falling into the cloud yesterday afternoon the Senkou Span A has acted as resistance has contained price and after this mornings selloff that pierced the Median Line the E-Mini found duel support at the Lower Parallel of the Schiff Adjusted Pitchfork and the bottom lower confines of the cloud at the Senkou Span B. The bounce from that level has moved back to the Median Line. Note how the Chikou Span (lagging line in blue) has bounced off the Lower Parallel twice.

After falling into the cloud yesterday afternoon the Senkou Span A has acted as resistance has contained price and after this mornings selloff that pierced the Median Line the E-Mini found duel support at the Lower Parallel of the Schiff Adjusted Pitchfork and the bottom lower confines of the cloud at the Senkou Span B. The bounce from that level has moved back to the Median Line. Note how the Chikou Span (lagging line in blue) has bounced off the Lower Parallel twice.

The Bloomberg Dollar Spot Index has been trapped in the Ichimoku Cloud since November 23rd. This has happened more recently in concert with price finding resistance at the Second Upper Warning Line of the Schiff Modified Pitchfork last week. Support at the bottom of the Cloud (currently at 1,160) will shift up to 1164.30 at the turn of the year. Despite a brief violation in October the Chikou Line (lagging line in dark blue) has for all intents and purposes tracked above the Cloud since mid-September. That said, downside momentum has re-acellerated lower since price hit duel resistance last week suggesting that the bottom of the cloud will be tested again.

The Bloomberg Dollar Spot Index has been trapped in the Ichimoku Cloud since November 23rd. This has happened more recently in concert with price finding resistance at the Second Upper Warning Line of the Schiff Modified Pitchfork last week. Support at the bottom of the Cloud (currently at 1,160) will shift up to 1164.30 at the turn of the year. Despite a brief violation in October the Chikou Line (lagging line in dark blue) has for all intents and purposes tracked above the Cloud since mid-September. That said, downside momentum has re-acellerated lower since price hit duel resistance last week suggesting that the bottom of the cloud will be tested again.

Russell 2000 Index targeting 1,585 at the Upper Warning line of the Long Term Standard Pitchfork and Shorter Term Schiff Adjusted Pitchfork Lower Parallel... by year end?

Russell 2000 Index targeting 1,585 at the Upper Warning line of the Long Term Standard Pitchfork and Shorter Term Schiff Adjusted Pitchfork Lower Parallel... by year end?

Follow Up...The resumption of the down trend in the DXY appears to be in gear. The acceleration to the downside out of the rising Schiff Modified Pitchfork's Lower Parallel (Green) has led us to draw the new Schiff Adjusted Pitchfork (Orange) and now the short term Standard Pitchfork (Red) where prices have been confined by the Median Line for the past six candles. Note that this shorter term Standard Pitchfork is dropping at the same degree as the previous longer term Stardard Pitchfork (Faint Red). It may be a coincedence but that same angle is matched by the downtrend in the Slow Stochastic. We tend to believe that it is not. A break of Lower Parallel of the Schiff Adjusted Pitchfork (Orange) will confirm the resumption of the longer term downtrend.

Follow Up...The resumption of the down trend in the DXY appears to be in gear. The acceleration to the downside out of the rising Schiff Modified Pitchfork's Lower Parallel (Green) has led us to draw the new Schiff Adjusted Pitchfork (Orange) and now the short term Standard Pitchfork (Red) where prices have been confined by the Median Line for the past six candles. Note that this shorter term Standard Pitchfork is dropping at the same degree as the previous longer term Stardard Pitchfork (Faint Red). It may be a coincedence but that same angle is matched by the downtrend in the Slow Stochastic. We tend to believe that it is not. A break of Lower Parallel of the Schiff Adjusted Pitchfork (Orange) will confirm the resumption of the longer term downtrend.

A few technical signals have developed in the DXY that at very least merits watching. What we consider a 12-day counter trend move (gray band on daily chart) may of at least temporarily run its course. Firstly, the DXY has stalled at the Upper Parallel of the Standard Pitchfork (Red) on the Daily chart in concert with the Slow Stochastic reaching it's upper limits. Secondly, on the 240-Minute chart (inset) after failing to follow through after a strong start early in NY trading yesterday the DXY reversed failing to reach the median line (red arrow)and this morning prices have initially broken support at the Lower Parallel of the Schiff Modified Pitchfork along with a break in the short term upper trend in the Slow Stochastic.

A few technical signals have developed in the DXY that at very least merits watching. What we consider a 12-day counter trend move (gray band on daily chart) may of at least temporarily run its course. Firstly, the DXY has stalled at the Upper Parallel of the Standard Pitchfork (Red) on the Daily chart in concert with the Slow Stochastic reaching it's upper limits. Secondly, on the 240-Minute chart (inset) after failing to follow through after a strong start early in NY trading yesterday the DXY reversed failing to reach the median line (red arrow)and this morning prices have initially broken support at the Lower Parallel of the Schiff Modified Pitchfork along with a break in the short term upper trend in the Slow Stochastic.

After a brief test of the longer term Schiff Modified Pitchfork Median Line (Blue dotted line) last Monday before the intra-day reversal and a suciquent test of the shorter term Standard Pitchfork's Upper Parallel (Red) the Daily E-Mini Futures are back above the Upper Parallel of the longer term Schiff Modified Pitchfork Upper Median Line (Blue). This is in concert with a continuation of the rising Customized KST leading us to believe that the Upper Warning line (Blue Dashed line) is a resonable target (2,700) barring a turn in the momentum oscillator.

After a brief test of the longer term Schiff Modified Pitchfork Median Line (Blue dotted line) last Monday before the intra-day reversal and a suciquent test of the shorter term Standard Pitchfork's Upper Parallel (Red) the Daily E-Mini Futures are back above the Upper Parallel of the longer term Schiff Modified Pitchfork Upper Median Line (Blue). This is in concert with a continuation of the rising Customized KST leading us to believe that the Upper Warning line (Blue Dashed line) is a resonable target (2,700) barring a turn in the momentum oscillator.

Copper broke two important support levels afforded by the Lower Parallel of the shorter term Schiff Modified Pitchfork (Green) and and the Lower Parallel of the longer term Standard Pitchfork on Tuesday (Red). If it can't muster a rally back through both broken levels and breaks 290 level HG1 will be toast initially targeting 275.

Copper broke two important support levels afforded by the Lower Parallel of the shorter term Schiff Modified Pitchfork (Green) and and the Lower Parallel of the longer term Standard Pitchfork on Tuesday (Red). If it can't muster a rally back through both broken levels and breaks 290 level HG1 will be toast initially targeting 275.

The two month counter trend move in the DXY never reached resistance at the Upper Parallel on the Schiff Modified Pitchfork (Green) and reversed as appears to have reached its terminus on November 7th . Since then the DXY has resumed its decline falling back through the Median Line of the Schiff Modified Pitchfork (Green) last week as downside momentum gathered a pace (measure here by Prings KST) until finding support at the Schiff Adjusted Pitchfork (Orange)on Monday of this week. Shorter term 240 minute below...

The two month counter trend move in the DXY never reached resistance at the Upper Parallel on the Schiff Modified Pitchfork (Green) and reversed as appears to have reached its terminus on November 7th . Since then the DXY has resumed its decline falling back through the Median Line of the Schiff Modified Pitchfork (Green) last week as downside momentum gathered a pace (measure here by Prings KST) until finding support at the Schiff Adjusted Pitchfork (Orange)on Monday of this week. Shorter term 240 minute below...

While shorter term and the DXY is still confined to the Standard Pitchfork on the 240 Minute chart.

While shorter term and the DXY is still confined to the Standard Pitchfork on the 240 Minute chart.

Follow Up...Prices have overtaken resistance at the Upper Parallel of the Schiff Modified Pitchfork. Prices now targeting next potential resistance at the longer term Schiff Adjusted Lower Parallel at 2,601.00-2,603.00

Follow Up...Prices have overtaken resistance at the Upper Parallel of the Schiff Modified Pitchfork. Prices now targeting next potential resistance at the longer term Schiff Adjusted Lower Parallel at 2,601.00-2,603.00

Price grid built from Dualing Pitchforks. Longer Term Schiff Adjusted Pitchfork and shorter term Schiff Modified Pitchfork and their sliding Parallels define the frequecy in the 240-Minute E-Mini chart. This in concert with the oscillator in the neutral zone of the Optex Bands. After hold the Sliding Parallel and Schiff Modified Pitchfork Median Line next hurdle in the Upper Parallel.

Price grid built from Dualing Pitchforks. Longer Term Schiff Adjusted Pitchfork and shorter term Schiff Modified Pitchfork and their sliding Parallels define the frequecy in the 240-Minute E-Mini chart. This in concert with the oscillator in the neutral zone of the Optex Bands. After hold the Sliding Parallel and Schiff Modified Pitchfork Median Line next hurdle in the Upper Parallel.

Follow up...Russell 2000 Index has held key duel support at previous resistance now support at the Upper Parallel of the longer term Standard Pitchfork and the Lower Warning Line of the shorter term Schiff Adjusted Pitchfork.

Follow up...Russell 2000 Index has held key duel support at previous resistance now support at the Upper Parallel of the longer term Standard Pitchfork and the Lower Warning Line of the shorter term Schiff Adjusted Pitchfork.

Counter trend rally in the DXY appears to have run its course finding resistance at the previous broken support level at the Lower Parallel of the longer term Schiff Adjusted Pitchfork (orange) and the Upper Parallel of the shorter term Schiff Modified Pitchfork (green).Duel Combination Pitchfork resistance repeals a further extention of the rally in concert with a rolling over of the slow stochastic after it reaches overbought.

Counter trend rally in the DXY appears to have run its course finding resistance at the previous broken support level at the Lower Parallel of the longer term Schiff Adjusted Pitchfork (orange) and the Upper Parallel of the shorter term Schiff Modified Pitchfork (green).Duel Combination Pitchfork resistance repeals a further extention of the rally in concert with a rolling over of the slow stochastic after it reaches overbought.

Weekness continues to seep into the RTY short term. First the break of the longer term Schiff Adjusted Pitchfork Median Line (Orange) and the second downtrending Schiff Adjusted Pitchfork Median Line (Green) at X. Then, being uable to return to the Upper Parallel of the Schiff Adjust Pitchfork three times and now teetering on the Lower Parallel of the shorter term Schiff Adjusted Pitchfork (blue) in concert with a lower high in the Slow Stochastic.

Weekness continues to seep into the RTY short term. First the break of the longer term Schiff Adjusted Pitchfork Median Line (Orange) and the second downtrending Schiff Adjusted Pitchfork Median Line (Green) at X. Then, being uable to return to the Upper Parallel of the Schiff Adjust Pitchfork three times and now teetering on the Lower Parallel of the shorter term Schiff Adjusted Pitchfork (blue) in concert with a lower high in the Slow Stochastic.

Although the week has only just started there is a hint that an evening star is developing in the weekly Nikkei 225 chart. This while the Optuma's Optex Bands oscillator starts to roll over in overbought territory and the 21 week fixed cycle is peaking. We view the current price action as an unfolding corrective consolidation that when complete will lead to higher prices.

Although the week has only just started there is a hint that an evening star is developing in the weekly Nikkei 225 chart. This while the Optuma's Optex Bands oscillator starts to roll over in overbought territory and the 21 week fixed cycle is peaking. We view the current price action as an unfolding corrective consolidation that when complete will lead to higher prices.

Russell 2000 Index.Prices are being drawn to key duel support at previous resistance now support at the Upper Parallel of the longer term Standard Pitchfork and the Lower Warning Line of the shorter term Schiff Adjusted Pitchfork.

Russell 2000 Index.Prices are being drawn to key duel support at previous resistance now support at the Upper Parallel of the longer term Standard Pitchfork and the Lower Warning Line of the shorter term Schiff Adjusted Pitchfork.

For all intents and purposes The SPX (Hourly) has been able to hold at support afford by the Schiff Modified Picthfork Median Line (green dashed line). If support at this level gives way next stop will be yellow dash line (marked with blue arrow) that marks Lower Parallel and Cloud support. The Chikou Line (lagging line/closing price shifted 26 bars back) has fallen through the Upper Parallel and has been unable to re-take the ground above it, rapping it's head twice (last red circle).This may be signaling further weakness.

For all intents and purposes The SPX (Hourly) has been able to hold at support afford by the Schiff Modified Picthfork Median Line (green dashed line). If support at this level gives way next stop will be yellow dash line (marked with blue arrow) that marks Lower Parallel and Cloud support. The Chikou Line (lagging line/closing price shifted 26 bars back) has fallen through the Upper Parallel and has been unable to re-take the ground above it, rapping it's head twice (last red circle).This may be signaling further weakness.

Don't ask me to argue with the trend in WTI Crude. Trades through price and Median Line resistance at $52.50 on Friday of last week. And has consolidated above the Median Line for the past five trading sessions as the Tenkan, Kijun and Chikou Lines all track higher above the Cloud with price.

Don't ask me to argue with the trend in WTI Crude. Trades through price and Median Line resistance at $52.50 on Friday of last week. And has consolidated above the Median Line for the past five trading sessions as the Tenkan, Kijun and Chikou Lines all track higher above the Cloud with price.

After a second non-confirmation of new highs in price by MACD in late August and early September the EUR entered a corrective trend indentified by the Schiff Adjusted Pitchfork. Stiil mired in the confines of the Upper and Lower Parallel of the Pitchfork as the down trend in momentum continues unabated as the shorter term moving average crosses the longer earlier this week and the cross raps it's head at the Median Line.

After a second non-confirmation of new highs in price by MACD in late August and early September the EUR entered a corrective trend indentified by the Schiff Adjusted Pitchfork. Stiil mired in the confines of the Upper and Lower Parallel of the Pitchfork as the down trend in momentum continues unabated as the shorter term moving average crosses the longer earlier this week and the cross raps it's head at the Median Line.

Russell 2000 Index continues to respect support and resistance on the price grid composed by both the Standard and Schiff Adjusted Pitchfork drawn from the same three pivots (in blue).

Russell 2000 Index continues to respect support and resistance on the price grid composed by both the Standard and Schiff Adjusted Pitchfork drawn from the same three pivots (in blue).

Pring' Long term KST gave timely long term sell signal in May of 2011 at crossover (red arrow) at an elevated area above "zero" and a timely buy in mid-2016 (green arrow) and second confirming buy with the break out above the down trend in the first quarter of this year. Up trend intact and is on track to the next level of resistance at 1,210.

Pring' Long term KST gave timely long term sell signal in May of 2011 at crossover (red arrow) at an elevated area above "zero" and a timely buy in mid-2016 (green arrow) and second confirming buy with the break out above the down trend in the first quarter of this year. Up trend intact and is on track to the next level of resistance at 1,210.

Pring's Intermediate Term KST rolling potentially signaling a short term top before a resumtion of the rally into the end of year

Pring's Intermediate Term KST rolling potentially signaling a short term top before a resumtion of the rally into the end of year

Value outpaces Growth this week as the move in rates drive the financials into investors arms..

Value outpaces Growth this week as the move in rates drive the financials into investors arms..

After the non-confirmation in the Slow Stochastics (heavy dot/dash purple line) of the lower low in price that met support at the Lower parallel of the Schiff Modified Pitchfork in late August the Dow Jones Transportation Index has charged on to record highs. The Index traded through the Upper Parallel of the Pitchfork yesterday and is targeting the confluence of resistance at the Median Line at the newly minted Standard Pitchfork (red) which has contained the rally from the August lows and the Internal 50% Extention Line of the previously mentioned Schiff Modified Pitchfork (green dotted line) at 10,200-10,225 level (red circle).

After the non-confirmation in the Slow Stochastics (heavy dot/dash purple line) of the lower low in price that met support at the Lower parallel of the Schiff Modified Pitchfork in late August the Dow Jones Transportation Index has charged on to record highs. The Index traded through the Upper Parallel of the Pitchfork yesterday and is targeting the confluence of resistance at the Median Line at the newly minted Standard Pitchfork (red) which has contained the rally from the August lows and the Internal 50% Extention Line of the previously mentioned Schiff Modified Pitchfork (green dotted line) at 10,200-10,225 level (red circle).

Follow up to 09/28/2017 post. The NKY is quickly approching our minimum target of 21,100 established in late September.

Follow up to 09/28/2017 post. The NKY is quickly approching our minimum target of 21,100 established in late September.

The price frequency first discovered with the Schiff Modified Pitchfork (Blue) when initially drawn in August from the swing low and Point of Origin at BluePO up to BueP1 and down to the higher low at BlueP2 is the same vector or frequency of the more recent Schiff Modified Pichfork in Green. First support is 1.1820 (at the Green Median Line) and second must hold support at the Lower Parallel at 1.1760.

The price frequency first discovered with the Schiff Modified Pitchfork (Blue) when initially drawn in August from the swing low and Point of Origin at BluePO up to BueP1 and down to the higher low at BlueP2 is the same vector or frequency of the more recent Schiff Modified Pichfork in Green. First support is 1.1820 (at the Green Median Line) and second must hold support at the Lower Parallel at 1.1760.

October 11,2017 Counter trend rally in the DXY (USD Index) from the September lows is at the very least showing signs of fatigue. Price has violated the Lower Warning Line of the Modified Schiff Pitchfork (green dashed line) and is teetering on support of the 2nd Upper Warning Line of the Standard Pitchfork (red dashed line) on the 240-min candlestick chart. This in concert with divergence in both RSI and the Composite Index (yellow dashed line) as well as with Optex Bands (see Optuma.com). Pring's Long Term KST Indicator (lower Panel) is rolling over from an elevated level. It is possible that the rally has reached it's terminus.

October 11,2017 Counter trend rally in the DXY (USD Index) from the September lows is at the very least showing signs of fatigue. Price has violated the Lower Warning Line of the Modified Schiff Pitchfork (green dashed line) and is teetering on support of the 2nd Upper Warning Line of the Standard Pitchfork (red dashed line) on the 240-min candlestick chart. This in concert with divergence in both RSI and the Composite Index (yellow dashed line) as well as with Optex Bands (see Optuma.com). Pring's Long Term KST Indicator (lower Panel) is rolling over from an elevated level. It is possible that the rally has reached it's terminus.

E Mini Active Contract 240min Candle Chart may continue to consolidate into Wednesday as the 38-day fixed cycle bottoms.

E Mini Active Contract 240min Candle Chart may continue to consolidate into Wednesday as the 38-day fixed cycle bottoms.

LME 3MO Copper breaks out of a short term base and trades above the Upper Parallel of the Schiff Modified Pitchfork

LME 3MO Copper breaks out of a short term base and trades above the Upper Parallel of the Schiff Modified Pitchfork

The 4-day advance from support at the Schiff Adjusted Median Line on the Daily S&P 500 Index Candlestick chart has driven prices to potential resistance at the Upper Parallel of the Pitchfork.

The 4-day advance from support at the Schiff Adjusted Median Line on the Daily S&P 500 Index Candlestick chart has driven prices to potential resistance at the Upper Parallel of the Pitchfork.

September 29, 2017 Update to September 18 posting. Nikkei 225 Index Weekly with 21-week fixed cycle did mark a bottom right on cue.

September 29, 2017 Update to September 18 posting. Nikkei 225 Index Weekly with 21-week fixed cycle did mark a bottom right on cue.

September 28, 2017. Bullish flag flying over the 240-Minute NKY while working off the overbought condition. Conservatively measures to 21,100 on a breakout above the consolidation pattern.

September 28, 2017. Bullish flag flying over the 240-Minute NKY while working off the overbought condition. Conservatively measures to 21,100 on a breakout above the consolidation pattern.

September 27, 2017. 20-City average Grade 60, No.4 ReBar Price (CWT) monthly sesonality chart, up 14.6% YoY and up 0.9% MoM.

September 27, 2017. 20-City average Grade 60, No.4 ReBar Price (CWT) monthly sesonality chart, up 14.6% YoY and up 0.9% MoM.

September 27, 2017. S&P 500 Growth/Value Ratio driven lower by the recent strength in financials and weaknes in tech.

September 27, 2017. S&P 500 Growth/Value Ratio driven lower by the recent strength in financials and weaknes in tech.

September 18,2017. Nikkei 225 Index Weekly with 21-week fixed cycle. Potentially bottoming on cue.

September 18,2017. Nikkei 225 Index Weekly with 21-week fixed cycle. Potentially bottoming on cue.

September 14, 2017. The S&P % 500 Daily E-Mini. Prices are temporarily trapped (last three days) at the Upper Warning Line 3 of the Schiff Modified Pitchfork (blue dashed line).This angle on the grid continues to be a key frequency. A redux of late July/early August that resulted in a pullback to the Upper Parallel of the same Pitchfork may develop but it may be premature to suggest that is what will unfold. Although the Slow Stochastic reflects an extreme overbought condition it does not have to immediately lead to another pullback of the same degree. The E-Mini could muster a move back to the more recent Lower Median Line of the Schiff Modified Pitchfork (2,525 at red circle). This would likely be in concert with a non-confirmation in the oscillator (similar to late-May/early- June and mid-July/early- August price and oscillator action (purple dashed line).

September 14, 2017. The S&P % 500 Daily E-Mini. Prices are temporarily trapped (last three days) at the Upper Warning Line 3 of the Schiff Modified Pitchfork (blue dashed line).This angle on the grid continues to be a key frequency. A redux of late July/early August that resulted in a pullback to the Upper Parallel of the same Pitchfork may develop but it may be premature to suggest that is what will unfold. Although the Slow Stochastic reflects an extreme overbought condition it does not have to immediately lead to another pullback of the same degree. The E-Mini could muster a move back to the more recent Lower Median Line of the Schiff Modified Pitchfork (2,525 at red circle). This would likely be in concert with a non-confirmation in the oscillator (similar to late-May/early- June and mid-July/early- August price and oscillator action (purple dashed line).

September 12, 2017. Last Friday's price action in the DXY built a hammer that found support at just below the longer term Schiff Modified Pitchfork Lower Warning Line (green dashed line) and the shorter term Schiff Adjusted Pitchfork's Lower Parallel (orange line) in concert with a third non-confirmation and a higher high in the Slow Stochastic (purple dashed line). If the turn in the oscillator holds last week's lows and the indicator breaks out above the one month down trend (orange dotted line in lower panel) the DXY may be able to mount a counter trend move through the Schiff Adjusted Median Line and on to resistance at the 93 level.

September 12, 2017. Last Friday's price action in the DXY built a hammer that found support at just below the longer term Schiff Modified Pitchfork Lower Warning Line (green dashed line) and the shorter term Schiff Adjusted Pitchfork's Lower Parallel (orange line) in concert with a third non-confirmation and a higher high in the Slow Stochastic (purple dashed line). If the turn in the oscillator holds last week's lows and the indicator breaks out above the one month down trend (orange dotted line in lower panel) the DXY may be able to mount a counter trend move through the Schiff Adjusted Median Line and on to resistance at the 93 level.

After a test of the longer term Schiff Adjusted Pitchfork Median Line (green circle) the S&P500 E-Mini reversed but needed another two days of sideways consolidation before overtaking both the the Upper Parallel of the longer term Pitchfork but also the Median Line of the "Dueling" Schiff Adjusted Pitchfork (red circle).

After a test of the longer term Schiff Adjusted Pitchfork Median Line (green circle) the S&P500 E-Mini reversed but needed another two days of sideways consolidation before overtaking both the the Upper Parallel of the longer term Pitchfork but also the Median Line of the "Dueling" Schiff Adjusted Pitchfork (red circle).

If the DXY can't hold support at the 91.55 - 91.60 level on a closing basis on the 240-minute chart it have a 90 handle in no time.

If the DXY can't hold support at the 91.55 - 91.60 level on a closing basis on the 240-minute chart it have a 90 handle in no time.

Worldwide Semiconductor Sales continue to accelerate...

Worldwide Semiconductor Sales continue to accelerate...

Early sign that the correction in the DAX may have run its course..

Early sign that the correction in the DAX may have run its course..

September 5, 2017. After three strong days it was hardly a surprise that the SPX paused at median line resistance on Friday. It's likely to be a pause that refreshes in "4th wave" corrective action before an assault initially on 2,490 and then on to new highs.

September 5, 2017. After three strong days it was hardly a surprise that the SPX paused at median line resistance on Friday. It's likely to be a pause that refreshes in "4th wave" corrective action before an assault initially on 2,490 and then on to new highs.

Although the heads and bottoms of candles aren't shaven this is the best example of Three White Soldiers I have witnessed in a long while. Measured target 6,060.

Although the heads and bottoms of candles aren't shaven this is the best example of Three White Soldiers I have witnessed in a long while. Measured target 6,060.

The BBDXY is still mired in the prevailing down trend defined by the frequency of the Combination Pitchforks (Standard and Schiff Modified) Prices are still pinned under the Schiff Median Line (green).

The BBDXY is still mired in the prevailing down trend defined by the frequency of the Combination Pitchforks (Standard and Schiff Modified) Prices are still pinned under the Schiff Median Line (green).

The NASDAQ 100 holds support at yesterdays opening (green arrow) at the Upper Parallel and breaks out above resistance (on third attempt) at the 2nd Upper Parallel of the Schiff Modified Pitchfork. The price grid that is featured is an example of Dueling Schiff Modified Pitch Forks explained in the three blog posts on Median Lines Analysis / Andrews Pitchfork at   https://www.optuma.com/blog/  .

The NASDAQ 100 holds support at yesterdays opening (green arrow) at the Upper Parallel and breaks out above resistance (on third attempt) at the 2nd Upper Parallel of the Schiff Modified Pitchfork. The price grid that is featured is an example of Dueling Schiff Modified Pitch Forks explained in the three blog posts on Median Lines Analysis / Andrews Pitchfork at https://www.optuma.com/blog/.

After a two month rotation into value stocks, growth takes over the helm again

After a two month rotation into value stocks, growth takes over the helm again

The Sliding Parallel built off the Schiff Adjusted Pitchfork held price pullback for the third time last Monday. Both the Pitchfork and the Sliding Parallel confirms frequency of up trend. Comes in at 2,424.69 today (8/29)...

The Sliding Parallel built off the Schiff Adjusted Pitchfork held price pullback for the third time last Monday. Both the Pitchfork and the Sliding Parallel confirms frequency of up trend. Comes in at 2,424.69 today (8/29)...

We have applied to the hourly chart of the NASDAQ 100, Dueling Schiff Modified Pitchforks. The first drawn from the pivot high at  PO  (green)   to the pivot low at  P1  (green)   and then up to the lower high at  P2  (green). The second is an “inverted Schiff Modified Pitchfork” and has been drawn from  PO  (blue) up to  P1  (blue) and then down to the lower low at  P2  (blue). There are several technical features of interest. The first three are revealed in the price panel. The two Pitchforks are virtually the same angle on the price/time grid and the second Schiff Modified Pitchfork (blue) found its origin or “bottom of the handle” after the Schiff Adjustment, directly at in the middle of the swing line of the first Pitchfork (red arrow). The frequency is further enhanced by the symmetry in time and price equality of the time to complete  PO-P1-P2  (green)   and  PO-P1-P2  (Blue). We also note the non-conformation of the Slow Stochastic at the low at  P2  (blue). This puts the odds in favor (barring a violation of the dual Median Lines) that prices will run to the dual Upper Parallels (red circle).

We have applied to the hourly chart of the NASDAQ 100, Dueling Schiff Modified Pitchforks. The first drawn from the pivot high at PO (green) to the pivot low at P1 (green) and then up to the lower high at P2 (green). The second is an “inverted Schiff Modified Pitchfork” and has been drawn from PO (blue) up to P1 (blue) and then down to the lower low at P2 (blue). There are several technical features of interest. The first three are revealed in the price panel. The two Pitchforks are virtually the same angle on the price/time grid and the second Schiff Modified Pitchfork (blue) found its origin or “bottom of the handle” after the Schiff Adjustment, directly at in the middle of the swing line of the first Pitchfork (red arrow). The frequency is further enhanced by the symmetry in time and price equality of the time to complete PO-P1-P2 (green) and PO-P1-P2 (Blue). We also note the non-conformation of the Slow Stochastic at the low at P2 (blue). This puts the odds in favor (barring a violation of the dual Median Lines) that prices will run to the dual Upper Parallels (red circle).

As we suggested in our last post on the daily chart of the E-mini Active front month futures contract that has Dueling Schiff Modified Pitchforks applied that unless prices were able to re-take the ground above the upper warning line of the second Schiff Modified Pitchfork (in blue) the next confluence of support at 2,410-2,405 (red circle in price panel) would be tested. By the close that Friday a Long Legged Doji had formed followed by a second Doji Monday suggesting equilibrium in the market. This, as the Slow Stochastic reached our target in the lower panel signaling an oversold condition that led to Tuesday's bounce. As of this morning, previous violated lower parallel of the other Schiff Modified Pitchfork (in green) has acted as resistance slowing a follow through. Only a rally through and a close free and clear of this line would allow us to begin to suggest that the correction may have run its course

As we suggested in our last post on the daily chart of the E-mini Active front month futures contract that has Dueling Schiff Modified Pitchforks applied that unless prices were able to re-take the ground above the upper warning line of the second Schiff Modified Pitchfork (in blue) the next confluence of support at 2,410-2,405 (red circle in price panel) would be tested. By the close that Friday a Long Legged Doji had formed followed by a second Doji Monday suggesting equilibrium in the market. This, as the Slow Stochastic reached our target in the lower panel signaling an oversold condition that led to Tuesday's bounce. As of this morning, previous violated lower parallel of the other Schiff Modified Pitchfork (in green) has acted as resistance slowing a follow through. Only a rally through and a close free and clear of this line would allow us to begin to suggest that the correction may have run its course

The above chart is the E-mini Active front month futures contract (currently September '17) with Dueling Schiff Modified Pitchforks applied (see Pitchfork Series for further explanation). Yesterday's 38 point or -1.54% decline broke support (red arrows) afforded by both the lower parallel of the Schiff Modified Pitchfork (green) and later in the trading session, the upper warning line of the second Schiff Modified Pitchfork in blue (which previously held on Thursday and Friday of last week). At the time of posting this chart, that Upper warning line has turned into resistance. Unless the ground above that level can be retaken the next confluence of support at 2,410-2,405 (red circle in price panel) is the next likely target in concert with a move lower to support in the Slow Stochastic indicator in lower panel confirming an oversold condition.

The above chart is the E-mini Active front month futures contract (currently September '17) with Dueling Schiff Modified Pitchforks applied (see Pitchfork Series for further explanation). Yesterday's 38 point or -1.54% decline broke support (red arrows) afforded by both the lower parallel of the Schiff Modified Pitchfork (green) and later in the trading session, the upper warning line of the second Schiff Modified Pitchfork in blue (which previously held on Thursday and Friday of last week). At the time of posting this chart, that Upper warning line has turned into resistance. Unless the ground above that level can be retaken the next confluence of support at 2,410-2,405 (red circle in price panel) is the next likely target in concert with a move lower to support in the Slow Stochastic indicator in lower panel confirming an oversold condition.

LME Zinc 3 Month Future broke out above price resistance at 2,980/2,985 this morning in concert with a break above the upper parallel of the Schiff Adjusted Pitchfork (orange) drawn from the point of origin at the June 7th low to the July 12th pivot high (that was not confirmed by a higher high in the stochastic) and down to the pivot low on July 21st. This angle was confirm by the shorter term Schiff Adjusted Pitchfork (blue). The Dueling Standard Pitchfork (red) confirms the price and frequency grid. Today's rally in zinc looks to be (3) of 3 and potentially marks the center of the June rally. With the turn in momentum (red circle) at the end of wave *2 zinc is initially targeting 3100 (Schiff warning line #1).

LME Zinc 3 Month Future broke out above price resistance at 2,980/2,985 this morning in concert with a break above the upper parallel of the Schiff Adjusted Pitchfork (orange) drawn from the point of origin at the June 7th low to the July 12th pivot high (that was not confirmed by a higher high in the stochastic) and down to the pivot low on July 21st. This angle was confirm by the shorter term Schiff Adjusted Pitchfork (blue). The Dueling Standard Pitchfork (red) confirms the price and frequency grid. Today's rally in zinc looks to be (3) of 3 and potentially marks the center of the June rally. With the turn in momentum (red circle) at the end of wave *2 zinc is initially targeting 3100 (Schiff warning line #1).

IWM Daily chart follow up...Prices held the lower parallel of the long standing channel created by the Schiff Adjusted Pitchfork (orange) and as of time of this post they have re-entered the range bound trading pattern although they now must contend with Upper Warning Line #1 of the Standard Pitchfork (red)

IWM Daily chart follow up...Prices held the lower parallel of the long standing channel created by the Schiff Adjusted Pitchfork (orange) and as of time of this post they have re-entered the range bound trading pattern although they now must contend with Upper Warning Line #1 of the Standard Pitchfork (red)

First introduced to us by Stephen Suttmeier of Bank America Merrill Lynch the VXV (3-Month Volatility Index) /VIX (SPX Volatility Index) ratio is charted in the lower panel below the S&P 500 Index above it. Only a quick glance reveals it's usefulness in identifying important lows of different degrees in the equity index . It's current level suggests that a potential correction low is unfolding unless of course something more nasty develops.

First introduced to us by Stephen Suttmeier of Bank America Merrill Lynch the VXV (3-Month Volatility Index) /VIX (SPX Volatility Index) ratio is charted in the lower panel below the S&P 500 Index above it. Only a quick glance reveals it's usefulness in identifying important lows of different degrees in the equity index . It's current level suggests that a potential correction low is unfolding unless of course something more nasty develops.

Generic 1st S&P E-Mini are up 13.75 points or +0.57% as of time of posting this chart. A somewhat muted bounce off the lows on Friday has developed into follow through this AM. Only a move back above the lower parallel of the longer term Schiff Adjusted median line and the 0.618 retracement of what we still consider the third wave of an ongoing 5 wave decline would have us alter our view that the current corrective phase has run its course.

Generic 1st S&P E-Mini are up 13.75 points or +0.57% as of time of posting this chart. A somewhat muted bounce off the lows on Friday has developed into follow through this AM. Only a move back above the lower parallel of the longer term Schiff Adjusted median line and the 0.618 retracement of what we still consider the third wave of an ongoing 5 wave decline would have us alter our view that the current corrective phase has run its course.

1000 Metric Tons (Subject to one month lag) Data as of 05/31/17 from Japan Aluminum Association and Bloomber. Lower panel 12 month Rate of Change.

1000 Metric Tons (Subject to one month lag) Data as of 05/31/17 from Japan Aluminum Association and Bloomber. Lower panel 12 month Rate of Change.

LME Aluminum 3 Month Rolling Forward Contract. USD/MT with 37 Period Commodity Channel Index Histogram and Bloomberg's Global Aluminum Inventory estimates...Data Courtesy of Bloomberg

LME Aluminum 3 Month Rolling Forward Contract. USD/MT with 37 Period Commodity Channel Index Histogram and Bloomberg's Global Aluminum Inventory estimates...Data Courtesy of Bloomberg

US 20-City Average 3003H14, 36"x96" Aluminum Sheet...Data courtesy of Engineering News Record

US 20-City Average 3003H14, 36"x96" Aluminum Sheet...Data courtesy of Engineering News Record

Prices heading toward key support at the lower parallel of the months long Schiff Adjusted Pitchfork on the IWM daily chart as the Slow Stochastic is approaching it's lower extreme.

Prices heading toward key support at the lower parallel of the months long Schiff Adjusted Pitchfork on the IWM daily chart as the Slow Stochastic is approaching it's lower extreme.

240-E-Mini follow up....Prices held at the confluence of support yesterday (see chart below) and produced a bounce but the rally failed at the underside of the lower parallel of the Standard Pitchfork (red) and Lower Warning Line #4 of the Schiff Modified Pitchfork. This morning Prices failed to hold previous support at the lower parallel of the Schiff Adjusted pitchfork (orange) and are tracking toward the key 2,450 level.

240-E-Mini follow up....Prices held at the confluence of support yesterday (see chart below) and produced a bounce but the rally failed at the underside of the lower parallel of the Standard Pitchfork (red) and Lower Warning Line #4 of the Schiff Modified Pitchfork. This morning Prices failed to hold previous support at the lower parallel of the Schiff Adjusted pitchfork (orange) and are tracking toward the key 2,450 level.

This morning's 240-Minute Generic 1st S&P 500 E-Mini chart has two additional pitchforks added (from yesterday's).Yesterday morning's break of the Lower Warning Line #3 of the Schiff Modified Pitchfork (green dashed line in chart below) was a hint that a technical change was afoot. With yesterday's intra-day reversal that began with the reversal underneath the Lower Warning Line #2 confirmed our concern. The addition of the Schiff Adjusted Pitchfork (in orange) and second Standard Pitchfork (in red) creates a triple combination grid. The confluence of support at the Lower Parallel of the Schiff Adjusted Pitchfork and the Lower Warning Lines of the other two Pitchforks has as of the time of posting has held this morning's price weakness.

This morning's 240-Minute Generic 1st S&P 500 E-Mini chart has two additional pitchforks added (from yesterday's).Yesterday morning's break of the Lower Warning Line #3 of the Schiff Modified Pitchfork (green dashed line in chart below) was a hint that a technical change was afoot. With yesterday's intra-day reversal that began with the reversal underneath the Lower Warning Line #2 confirmed our concern. The addition of the Schiff Adjusted Pitchfork (in orange) and second Standard Pitchfork (in red) creates a triple combination grid. The confluence of support at the Lower Parallel of the Schiff Adjusted Pitchfork and the Lower Warning Lines of the other two Pitchforks has as of the time of posting has held this morning's price weakness.

Prices break below Lower Warning Line #3 of the Schiff Modified Pitchfork on the Generic E-Mini 240- Minute price grid this morning.

Prices break below Lower Warning Line #3 of the Schiff Modified Pitchfork on the Generic E-Mini 240- Minute price grid this morning.

China Rebar Inventory Total (10000 Tons) 08/04/17

China Rebar Inventory Total (10000 Tons) 08/04/17

USD /Metric Ton Latest Data From 08/04/17

USD /Metric Ton Latest Data From 08/04/17

US 20-City Average Re-Bar Price holds at elevated highs...Data courtesy of Engineering News Record

US 20-City Average Re-Bar Price holds at elevated highs...Data courtesy of Engineering News Record

This a cumulative Daily 30 min market profile chart of the NASDAQ 100. The red lines indicate the point of control on any given day. The green lines are the first, second and third deviation from the point of control and are extended across the entire length of the chart (one year of data). The intensity of the clusters of green show points of support and resistance. The lack of clusters represent potential "vacuums" where price could accelerate through.

This a cumulative Daily 30 min market profile chart of the NASDAQ 100. The red lines indicate the point of control on any given day. The green lines are the first, second and third deviation from the point of control and are extended across the entire length of the chart (one year of data). The intensity of the clusters of green show points of support and resistance. The lack of clusters represent potential "vacuums" where price could accelerate through.

Despite the lack of significant progress to the upside and the continued sideways chop since July 20th (blue arrow) price has successfully held the Schiff Modified median line (green dotted center line). That said, the price action is coiling below the upper warning line 3 of the second Schiff Modified Pitchfork. This normally leads to an accelerated move out of the pattern.

Despite the lack of significant progress to the upside and the continued sideways chop since July 20th (blue arrow) price has successfully held the Schiff Modified median line (green dotted center line). That said, the price action is coiling below the upper warning line 3 of the second Schiff Modified Pitchfork. This normally leads to an accelerated move out of the pattern.

Multiple Time Frame Momentum Analysis...Longer term MACD readings suggest S&P 500 still in gear to move higher but shorter term readings affirm continued malaise which could transform into a leg lower before the corrective action has run its course.

Multiple Time Frame Momentum Analysis...Longer term MACD readings suggest S&P 500 still in gear to move higher but shorter term readings affirm continued malaise which could transform into a leg lower before the corrective action has run its course.

Multiple Stochastic Divergences marking the upper and lower parallel of the Schiff Adjusted Pitchfork on the daily IWM ETF chart

Multiple Stochastic Divergences marking the upper and lower parallel of the Schiff Adjusted Pitchfork on the daily IWM ETF chart

WTI Crude trades above the Cloud for the first time since early February and as of this AM the active futures contract has held that support.

WTI Crude trades above the Cloud for the first time since early February and as of this AM the active futures contract has held that support.

S&P 500 Index finds initial support at the lower edge of the cloud on Thursday afternoon on the Hourly Ichimoku chart. Cloud support is currently higher at 2466.30 on 8/1/17. Both measures of Hourly momentum failed to confirm the new price highs and are rolling over again.

Price remains trapped under resistance afforded by the Lower Warning Line on the Schiff Modified Pitchfork applied on the 240-Minute E-Mini chart.

Price remains trapped under resistance afforded by the Lower Warning Line on the Schiff Modified Pitchfork applied on the 240-Minute E-Mini chart.