Simple really.  On point and figure charts the trendlines are drawn by the software guided by PNF rules and you just observe where the index or stock is at in relation to it.  You really don't have any say in the trendline placement (and it should be noted that on the daily PNF chart there is no trendline in the way).  

The most useful things about PNF charts are the support and resistance they provide.  But, it is not uncommon for the trendlines to mark important inflection points.  So, I prefer to take note of it.

PNF charts are many times uncanny at finding the true area of problems for the market.  I'm not saying it will stop here but I wouldn't be surprised if we do a little backfilling before we progress any further north.

Not much has of yet

S&P weekly PNF

No political fight meant.But WTF is going on.  Have we totally lost our minds?

That was kind of interesting.  Thx.  I liked the way you pulled off the ratio with  falling dollar fund.

I won't comment since my E-wave knowledge is growing but still inadequate. I'll just say thanks because it seems to fit pretty well, especially the current strength.

I've heard it said that trendlines are better drawn with a crayon.  I think that says a lot.  Otherwise, I would look for other things: a firm close and hold above the line, lost divergence (which may be happening now etc.)    I don't know of any strict rule on how many days or anything.  The biggest thing to be on the look out for right now would be a bull trap with a quick reversal down.  Just my thoughts.

Thanks Tom,  that was great. I forwarded that to family.  Maybe they won't think I'm a complete idiot for remaining cautious. (lol)

DNDN appears to have consolidated into a big flag pattern (if you ignore the big volatile down in May that filled the gap).  If you are optimistic it just filled the gap. (lol)  Volume appears to be picking up the last couple days.   Deserves watching. A more aggressive breakout could have been taken already depending how you draw the top resistance line.

DNDN

Since it's a laptop and all have great processing power these days - and the internet connection is the limiting factor, why pay more than you need to?  HP, Compaq (same as HP, Dell).  But really the fastest processor you can find for the best price with a minimum of 2 gig ram memory.  Hard drive size on a laptop is one of those things you can compromise a bit.   Some folks love Apple's and probably for good reason but I'm too cheap to pay the premium.

They have an alert saying they are investigating. Some charts are not updating.

If you have been following the NYSI weekly chart you may have noticed that the fast stochastics have already cycled half way down - while the S&P has moved sideways.  To me that is interesting because unless the market falls apart hard and fast I really don't see much of a decline likely for this 5/3 stochastic cycle.  The next cyle should portend higher prices for the S&P.  

Here's the problem that we'll have to watch.  It's very unusual for the NYSI to get above about the 1400 level.  I see it almost reached 1600 one time around 2003 but that was it.  Usually it tends to stay below 1400.  It's still near 1200 after half the cycle down. I suppose the market could find a trading range forr a while but we'll have to see how it plays out.

Very nice. Thanks rp.

If they all link to charts to view that would be really nice.  Nice fast reference when I need it.  Thanks,  Matt.

I'm curious as to what EWI thinks of our current position.  I think I heard Mr. Prechter talk about Primary wave 2 in a recent interview, as well as posts below this one.  (That would assume that the 2000 high was the end of wave 5.)   I know it doesn't matter to our trading position because the next move would be down either way.  Just curious, what they think.  Thanks in advance.

Wow, interesting post.   I also have Venezuelan and Colombian connections in my family.  I've been watching the situation develop.  It reads like a typical script for a newly minted dictatorship.  I hope your girlfriends parents' and family can leave before it all caves in.   I would have to think that the longer they stay the higher the risks they will assume.  Best wishes for their safety and passage.  

john

I agree with Ron Paul's vision of small government, but beyond that he's just kind of nutty, imo.  When it comes to disease or possible pandemics, awareness by the population is one of the most important methods of limiting it's impact.  Might it border on sensationalism?  Perhaps, but I would argue that it is better to make people aware and then be wrong than to say nothing and be right.

Yeah, it was a good thing your chart was in the dynamics to keep an eye on the back test.  I was starting to get a little nervous.

NYSI weekly crossover with fast stochastics, when it gets to the bottom.  Can use in conjunction with a BPNYA cross if you're cautious.  Works great.

I read the news about the poor trial results(not deeply read just surface read).  That, coupled with a bad market this morning is going to make it a tough trade.  I noticed AEZS trades a lower volume of shares so putting it out there early is likely to hurt you.  Unfortunately, holding onto it has that possibility also.  I don't know the best answer, but I think I'd try to get a descent price out of 1/2 or so early and hope for the market to stabilize a little later to move the rest.  Good luck with it.  There's no good way to battle surprise bad news.  I hope somebody else has a better idea.