16/05/2013

SP500 how the daily tops are being made.

SP500 1 hr the last four days. Break 1 and 2 are done and number 3 will be done the same way likely.

Look at what started number 1. First you must have a rising 21 MA, always. After the top May 13 the markets move sideways with 8 MA below or close above the trend. Then the robots sell down the trend to a bottom. The 8 MA falls. At that bottom the robots buy as much as possible. Then they send the trend above the rising 21 MA and the 8 MA turns up automatically.As soon as the 8 MA seems to cross 21 MA it is green light for the rally which takes the index up to the US close with a new all time high. Next day the same scenario. Sideways with the MA's moving the same way until a bottom is arranged. At that bottom the robot buys. In this case the 8 MA held just above 21 MA the whole time so the rally could start immediately. At the top the robots sold and now it is today, we are following the the rising 21 MA with the 8 MA above until afternoon when the drop signal might come. However there are five waves to the top now so the robots might choose the downside today. Look for your self on your 1 hour chart.

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