SPX update: keeping it real darn simple with only 4 trendlines.

Often we, market analysts, over-analyze the market. Every scribble is, by every pundit, given heavy weight. But, do we really need to? Nah, let’s take a step back and look at the market since the March 2009. What do you see: a trendline connecting the 2009 low with the 2011 low (Primary II): the blue Baseline. Simple. This trendline can then be copied and moved to the 2011 high (Primary II). Voila and you have your (very) long term trend channel. Simple. Darn simple.

(click to enlagre)

SPX update 11242014

Next, is the black Baseline. It is the 2nd most obvious trendline since the 2009 low. Look how price has adhered to it. Beautiful. Simple. Copy this trendline, move it lower, and it connects the Primary II low with the recent October 15 low. This is the next lower degree Elliot wave channel. Simple. Darn simple.

Price has been able to move above the upper blue trendline since the past year, and mostly stay above it, but has not been able to move above the upper black trendline since the summer of 2011. If it can do that, sustained, then (much) more upside is ahead. If it can’t, I expect it to fall back to the lower blue baseline! Simple. Darn simple.

For now, even as long as price is inside the black EW Channel, the trend is UP. That’s really all there is to it. Simple. Darn simple.


I.I. likes to keep things simple. Simple is best. Simple is easy to understand. Simple is trade-able. If you like that too, consider becoming an I.I. Premium member. This month is I.I.’s 3 month’s anniversary with a special $5 trial month. Please click here to sign up.


2 thoughts on “SPX update: keeping it real darn simple with only 4 trendlines.

  1. Pingback: NYA update: price reversed at long term parallel trendlines | Intelligent Investing

  2. Pingback: SPX update: adding a few more trend lines, but still keeping it simple | Intelligent Investing

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s