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Chaos Clinic Recap

Here are Al's comments

     Has Santa Left The Market?
     Chaos Clinic for March 8, 2019

The Santa Claus rally looks to have ended this week. On Monday the S&P opened
gap up, then dropped sharply at the end of a second Fireball Top as shown on the
chart. The first Fireball top in late September, early October 2018 was the all time high
in the S&P.

From that all time high, the market declined in a 7 move Chaos Clamshell, dropping
sharply move 7 in December. Then it bounced sharply the day after Christmas,
with the Dow up over 1000 points on December 26th. Since then, the S&P has rallied
in 7 moves as shown, into a second Fireball Top. Taken together, this looks like a
larger move 1 and 2 as shown by the circled numbers.

This larger move 2 has met resistance at the same price levels that stopped moves
2, 4, and 6 of the larger move 1 down. This resistance level is shown on the chart
by the light purple line. WD Gann observed that the 4th touch of a support, resistance,
or Gann angle line was a "make or break" situation. Whether prices broke through or failed,
an extreme price move usually followed. This suggests a sizable larger move 3 down
could be starting.

I find a rainbow of exponential moving averages is very useful in counting moves. This chart
shows a rainbow of EXMA's of 1.5, 3, 6, 12, and 24 days. In the Santa Rally, moves 4 and 6
pulled back to the 12 day EXMA. That EXMA has now turned down, and has been crossed by the
1.5 and 3 day EXMA. The 6 day may cross today.

I identified the possibility of the second Fireball in the chat room
during last Friday's Chaos Clinic. This week on Monday and Tuesday I confirmed that this
did indeed look like a completed Fireball Top. I also posted the chart for SH, showing
the pattern as a Fireball Bottom. Subscribers to my Tomorrow's Market Hotline benefited
from these comments. For more, see my catalog

This pattern may well be part of a large Fractal of Pi. To learn about Chaos Clamshells,
Fractals of Pi, and more, check out the Chaos Trading courses
Besides the comments made by Al, the chat room has live
comments from other traders who sometimes share their views,
trades and tips. Below are the chat room comments from this clinic

3/8/2019 10:15:55 AM MT Al****:: you too GON
minor typo in your post-the T on This may be... is not bold
3/8/2019 10:04:24 AM MT gon:: Have a great weekend!
3/8/2019 9:01:39 AM MT rvb****:: like the post good work
3/8/2019 8:32:08 AM MT gon:: Ok Al. Just checked and have the correct version. Our editors changed the title so not to repeat the question format so often.
3/8/2019 8:27:53 AM MT Al****:: GON: I made some changes to the clinic writeup
3/8/2019 8:17:12 AM MT gon:: Thank you Al for the "make or break" Gann insight!
3/8/2019 8:15:42 AM MT gon:: Ok, no prob, Mercury retrograde.
3/8/2019 8:14:23 AM MT RR:: Good Morning all.
3/8/2019 8:11:10 AM MT Al****:: I am not doing a Teamviewer room at the moment-having a computer problem
3/8/2019 8:05:45 AM MT gon:: Ok, now it's green, thank you.
3/8/2019 8:04:31 AM MT gon:: Hello, I'm trying to log in but Dr. Al looks like not connected.
3/8/2019 7:35:02 AM MT Pyc:: I would love to be in the teamviewer room but i am unable to login because im on my cell
3/8/2019 7:16:00 AM MT srj****:: GM Al
3/8/2019 6:43:12 AM MT Al****:: GM all-good luck today; Chaos Clinic posted on the AUX page

9:00 Eastern-System: No comments

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