Case for a Gartley 222
A speculator named H.M Gartley wrote and published an encyclopedic book back in 1935 titled "Profits in the Stock Market". On page 222 of that book he introduced a harmonic pattern which is now famously known as the Gartley 222. We may be about to finish a 222 that has been in the making since October 4...
The finish date I'm looking at may be around the New Moon of January 23, 2012 which is 16 weeks from the October 4 low and 9 weeks from the November 25 low. 16/9 is within Hursts criteria for a 10/20 week low cluster.
Internals of the Gartley are nearly perfect so far with the 618 and 786's containing the moves.
Also notice the down trendline off the July highs and how the SP500 cannot seem to get above it. If the S&P struggles for much longer it may quickly reverse and test the lower trendlines down around 1120-1125 which is the 78.6% retracement of the upmove since October 4.
I am strongly considering shorting this pattern if the next 2 weeks show a volatility spike and a weak tape...Odds are very high for some Gartley selling here in my opinion. Stay tuned. Let's see what next week brings....
The finish date I'm looking at may be around the New Moon of January 23, 2012 which is 16 weeks from the October 4 low and 9 weeks from the November 25 low. 16/9 is within Hursts criteria for a 10/20 week low cluster.
Internals of the Gartley are nearly perfect so far with the 618 and 786's containing the moves.
Also notice the down trendline off the July highs and how the SP500 cannot seem to get above it. If the S&P struggles for much longer it may quickly reverse and test the lower trendlines down around 1120-1125 which is the 78.6% retracement of the upmove since October 4.
I am strongly considering shorting this pattern if the next 2 weeks show a volatility spike and a weak tape...Odds are very high for some Gartley selling here in my opinion. Stay tuned. Let's see what next week brings....
posted by chartblog at
6:47 PM
5 Comments:
Dave, Here is Jeff Copper's report
The Monthly and Daily Charts Show S&P Is Coiling
Read more: http://www.minyanville.com/businessmarkets/articles/Gann-theory-market-cycles-winning-trade/12/8/2011/id/38277#ixzz1gBR29H8M
What is your thoughts? Thx
There is alot of evidence and support behind this Gartley move down here.
If the upmove from November 25 low was a B wave it means there is a missing wave C.
We need to see some weak tape within a week to confirm it though.
-Dave
Dave I prefer the bullish count........is 2250 negated now?
Thanks.
Noticed that Merriman had a three-star critical reversal date of December 7-8.
http://www.mmacycles.com/weekly-preview/mma-comments-for-the-week/mma-comments-for-the-week-beginning--december-12,-2012/
Any other positive or negative astro data on your horizon than the Puetz window that may be effective
during December through the potential January lows?
Dec 30 looks negative. Dec 28 is the Bradley
If late January is the Hurst 20 week low down around 1220, the bull market climb continues to 2250
January looks like where the 20 year low will hit. One month late.
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