CRX, weekly, 5yr historic
*post inspired by Albertarocks
see: http://albertarocks-ta-discussions.blogspot.com/
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The CRX caught my attention as early as Spring 2011 - which was interestingly when we put in what may become a long standing price peak.
Another giant H/S formation?
Since the 2008 collapse wave, and the subsequent 'rally of delusion' the CRX is one of the cleanest looking H/S formations for anything out there. The RS peak of March'2012 never came close to breaching the February 2011 peak. It is a formation that looks good, and it is now seemingly on a trend that will take out a number of key warning levels.
Primary CRX target for the bears will be 680. That is 150pts lower, roughly 18%. Such a level would indeed equate to somewhere around Sp'1150/00. The last time CRX was at that level, SP' was indeed 1000. I'm not expecting Sp'1000 this summer, although it is something to keep in mind, but surely we'd need a black swan or two to reach those low levels.
As for those other two levels of 550 and 450, I just can't see that happening until 2013, if at all. The Bernanke - and other central bankers, will want to do everything in their powers to prevent a second deflationary collapse wave. We all know Benny will already be standing by to hit the QE3 button, but as is ALWAYS the case, the Federal Reserve is reactionary to events, they never pre-empt.
So, Bears 'should' have a free ride down to at least sp'1150/00 across the next few months.
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I think that's it for tonight....
We will probably have some big market moves tomorrow...one direction or...the other.
Goodnight from London