This last run-up has been accompanied by massive divergences in my NYSE and
NASDAQ breadth models signaling at least a ST top of some significance. The
caution now is that the models have moved down to the neutral zone from which
they could mount a confirmation should the rally continue.
----- Original Message -----
Sent: Sunday, July 31, 2005 7:46 AM
Subject: [RT] SPX Thrust Reversal
On Friday we had a Thrust Reversal in the SPX
The Thrust Reversal is a Wyckoff pattern which consists of 1) a prior
pivot high, 2) an up-thrust bar which begins below the pivot line and
closes above the pivot line, 3) there may be several additional bars all of
which remain above the pivot line and close above the pivot line, and 4) a
down-thrust bar which begins above the pivot line, takes out the low of the
up-thrust bar, and closes below the pivot line.
Attached chart shows all 5 Thrust Reversals since December 2004. The
smallest decline was 35 handles and the largest was 67. The shortest non-stop
decline was 23 handles.
Earl
