Yearly trend: in 2012 /2013, qualification in a new bullish parallel pattern

On a yearly basis, a bullish parallel pattern is in progress with a strong dynamic for LY. PY could cross MY next period. A PEI is in progress with our stochastic. On a Historical basis, one of the most bullish pattern ever seen (since the end of XIX century). 

Idea: LY will continue to decline for two periods or more

Bet: S&P 500 rise in the 1986 / 2000 as a benchmark.

 

Long term: bullish parallel on a quarterly basis

On a quarterly basis, the pattern is a bullish parallel one. The dynamic for our 7 / 23 quarters moving averages is strong and continue thru 2013. A PEI is in progress with our MACD.

On a monthly basis, with a type I PEI in progress, as long as PM proves to be a support, a bullish parallel is in progress.

Idea: use bullish parallel rules on a monthly basis

Bet: as long as monthly M7 is up a decline is only technical correction.

R = rise > 2 years, +++ (should be above 2 000, 3 000 and +++);    S = PM (1300.1)

  

Medium term: LW could be an objective

On a weekly basis; volatility is above a reference one. Our stochastic and MACD are overbought. LW should act as a support.

Idea: as long as our stochastic is not oversold, a decline could be in progress.

Bet: LW is our main support.

 

R= MW (1360)       S = LW (1301.8)

 

 Short term:  a recovery could develop

On a daily basis, as long as M7 is down, the main trend is down. With a recovery for M23 a bullish A type crossover could develop. Above MD, UD is our next objective.

Idea: next week, without a recovery above MD, LW will be our first target.

Bet: bearish with a type III PEI.

 

R = PD (1347.6), MD (1356.6)         S = LD (1318.7)

 

Conclusion: hold on long position as long as LW proves to be a support.