Channels within a Channel
The start of the Bear Market Rally back in March was when the LAC [see descriptions below] was started and in a little over two months the Index had reached the Upper Boundary for the first time. Since then the Index has remained in the upper half of the USC with the exceptions being the June-July correction and now in late October - early November. So far those are the only time periods when the Index dropped below the TRL-5. It is now back above the TRL-5 but that will be short lived as the Index is nearing the completion of this latest up leg . In July the TR-4 failed as support and the Index dropped down to the TRL-3 . This next down leg will test the TRL-3 and possibly the TRL-2 will be tested.
- TRL-6 - 1120± - lilac and TRL-1 - 895 - orange
- Upper and Lower boundaries of the Large Ascending Channel [ LAC ] formed at start of the Bear Market Rally in March, 2009
- TRL-6 - 1120± - lilac and TRL-3 - 1000 - red
- Upper and Lower boundaries of an Upper Sub-Channel [ USC ] of the LAC
- TRL-3 - 1000 - red and TRL-1 - 895 - orange
- Upper and Lower boundaries of a Lower Sub-Channel [ LSC ] of the LAC
- TRL-5 - 1065 - black
- Centerline of the USC
- TRL-4 - 1040 - blue
- Support trend line in lower half of USC
- TRL-2 - 940 - green
- Centerline of the LSC
However before that happens there is probably some more upside with the Index back above the TRL-5 . In theory the Index could RIP to the upper TRL-6 boundary. Before that can happen there is RESISTANCE at 1073.86 and between 1084.37 and 1085.96. At one of those levels this RIP will come to an end and the Index will take on the flying characteristics of a large stone. As they say ...to be continued.
