Sunday, October 28, 2012

Trick or Treat? Full Moon reversal?

The Dow Jones Monthly S1 pivot point held as support last week and the 13050 open gap got filled. The 200 day moving average is just below and should provide short term support, along with the Full moon on Monday. Look for the open gap above at 13300(weekly R1 pivot point) as a possible dead cat bounce target, and 12975(weekly S1 pivot point) gap below for support.

Back on October 5th I said look for a big pullback on the NDX at the Yearly R3 pivot point(2870). The NDX now has pulled back 200+ pts. to the YR2 pivot point and the 200 day moving average. Price usually moves from Pivot point to pivot point ie: YR3 to YR2. Fridays action on the 200 day looks pretty bullish for the NDX for the coming week. Plus full moons are usually a buy signal. There are some big open gaps below at 2625 if the 200 day fails.

This chart shows how price reverse's around new moons and full moons. Not 100% exact, but odds favor it. (thanks to Omega for this chart)

Red arrow=New moon
Blue arrow=Full moon
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