Equity Markets (DAX, SPX) continued: I will spell it out! Why this is the turning point and why you should look for a short entry or at least pick up some puts.

Scroll Down to bottom for Friday 24th Jan update:

I just don't seem able to get through to you all about this. So here is most of my argument minus the entry short entry (which if you havent done already should be made in the next three trading days of 23 Jan , 24 Jan and perhaps Monday 27th January.If you prefer you can wait for the second attempt or rounding top that will surely follow. I don't know whats changed but it has plus there has and a fierce battle between Bull n Bear has been highly visible all this week.
Firstly if you are not conversant with Andrews Median Line Theory here is the case simply put.
1. We have reached the target ( centre lines) of two historical Andrews pitchforks. The target/objective is finally reached and there is no where else to go but down. Not only are these two Andrews pitchforks massive but they contain all the data that is possible since the DAX futures contracts inception ( 23 Nov 1990) and this point ( low) is used as the P0 anchor for the giant PF.

 This one contains the reaction line that price appears to have passed straight through. But look back at how price often passes through and then stalls before falling.

 Price has been aiming for these two centre lines and it could be argued that there is no further upside target although the rounding or topping out process could easily contain another new high so take great care.
 Not only this important fact of the two centre lines being pierced  but if you look at price behaviour you will see that each successive move up has had a successively shallower retracement until we have seen an almost hysterical price pattern that must climax.
 Now we use my proprietary line location technique. Simply put our data representation system ( here using Jap candles and Time Vs Price on X & Y axis) is missing a dimension. Perhaps we need to look at 3 D data systems such as Nanex JTools price sequencer because after sitting infront of a screen both as a professional and now a private trader probably for longer than some of you have been alive I can see that our reaction lines and indeed all linear studies applied to charts have another dimension to them and are infact more like vibrating energy fields which curve and as such can have more than one location in different time frames. If you want more information you should contact me.
Anyway as i showed this image on both sites ( medianlinetrader.blogspot.com and Commodity-analysis.co.uk). Here is the DAX with the full 100% reaction line from the historical PF's shown above. Also look at behaviour at reaction lines. These fall into recognised  and repeated Median/Reaction line combo patterns that I have identified over the years and use for entries in conjunction with the slimmed down B-Line and 2X template:

  This is the line location of the same line in the 240 min. No drawing new lines this simply moves as we drop down from the daily ( above) to the 240 min below. This was the position a few days ago.

Now look:

reaction line in red and dotted red ( same line different TF location plus the Centre lines are shown and offer us real insight into the trading zone ie supp/res)

  Now we add another D/s PF + RL's (see its effect yesterday?)Gap repoening last night and down but....

It's not going to be easy but we are heading back to the centre line that was untouched in the previous attempt at 9640. If you want the full report plus the entry plus our stop and risk levels pls contact us.
UPDATES TO COME and links in previous post plus the ES

Friday 24th Jan 2014

Don't expect the tape to snap back. First objective reached for ES and DAX but we need a move below 1800 to 1792 or DAX 9370 but perhaps a bounce first but downside momentum should build. YM also shown below. NB: These are local forks and the move will be far greater but these CL objectives should once reached show a bounce and further upside before correction/move lower resumes

The DAX . Are we near the climax? Plus the Spoos

 I warned all subscribers on 20th Jan  that this is highly probably the top:http://www.linkedin.com/groupItem?view=&gid=68663&type=member&item=5831076538010865666&qid=9b611dee-a3d5-4c15-a590-25636601237b&trk=groups_items_see_more-0-b-ttl

here's todays comment:http://commodity-analysis.co.uk/Daily_Chart_&_comment.html

 Heres what i published on 15th Jan below

These are the big daddy's Pitch forks/median lines that can be drawn on the DAX. I suggest you draw them yourself and see what you think. We still have to reach the black centre line & are not far off and it appears we are running on fumes to get there having now made a HH but one more push and then i suggest we could then see a similar topping pattern & even though the fundamentals particularly for Germany are promising the overall outlook in Europe is mixed. As someone who lives in France I should know and I wont even start writing on that divisive subject. Instead I want you to observe the different line locations in each and every time frame and notice the difference. If you are shrewd you will be able to realise the limitations of our data presentation systems such as a 2 D bars and candles, Price Vs time etc and will be able to not only see market structure but use this simple example to your profit.If you cant make sense of it or what I am on about check out our site www.commodity-analysis.co.uk. Below under these simple DAX forks is a more complicated Spoos example.
Infact the situation isnt simple as these lines have different locations in each time frame.

Heres the emini S &P and another historic reaction + pitchfork study.Its a very different picture with a singular lack of higher highs. The reaction lines are drawn by auto indicator. I have gone over them with manual trend lines and you will see the thicker lines are manually inserted. Look at how they define the range.. supp + res etc.

Crucial turning point for Gold lies ahead at $1150 or does this pitchfork reveal we have already bottomed?. Critical historic mega Andrews Pitchfork + DAX.

Continued form previous post... why has Gold bounced here then?
Look at two pitchforks below

 heres the effect on price form the centre line

 DAX

Crucial turning point for Gold lies ahead at $1150. Critical historic mega Andrews Pitchfork + DAX.... My New Year gift to you!

This is my New Years gift to you! Notwithstanding that I have now already offered you entry levels in Sugar and Coffee (see previous posts). Although I rarely try to pick bottoms I personally think from a purely technical poiint of view that we are near both in Sugar and Coffee BUT we should all remember the old phrase that was often told when i worked in the London futures and FX markets in the 80's and 90's...
" People who try to pick bottoms get dirty fingers"!!! Perhaps a touch crude but still true in this context so beware in any contratrend setup and patience is the greatest virtue. I prefer to wait for the new trend and then pick the first or second retracement using the B-Line and 2 x system.
 Anyway and with that in mind here's another historical pitchfork that we will be using to gain a long
contra- trend entry. The effect of historical Andrew's and non Andrew's pitchforks is beyond doubt (and  reveals time and time again important market structure of the price matrix) but my work on horizontal pitchforks provides extremely high probability setups  which surpasses normal historical high time frame forks and the horizontal or near horizontal median line adds an extra degree of probability. This chart shows the mega-fork. Ignore it at your peril.

I suggest that there is an extremely high probability of price touching this area at the centre line  $1150 and rebounding and after all this is the big Daddy of all Gold pitchforks. However I am not saying price will reverse long term but it will rally to some degree and can say that with a high degree of confidence.

Here's another study & PF with Reaction lines.

and finally a composite chart of nearly all the above charts is shown below indicating the confluence of two mega median lines ( one from a fork not visible above). What i propose is to overlay whatever technical indicator template you use over the linear studies comprising of median and reaction lines and then consider your entry if your system indicates so. I use an overlay of Bolly bands & MA's plus the B-line ( fast and slow stochs) and 2 x  template.

It has worked for me with some minor tweeking( i often use it in higher time frames than intended and use the stoch patterns/divergence etc) and gives me the opportunity to enter a trade and get multiple time frame confirmations.

 Below cash DAX also is nearing one of its it's major centre line objectives....

Coffee KC Hits bottom.Looks like we have finally found lasting support.

I will stalk a retracement of the last few days move upto the 115.80 level and try to pick the first entry of the new trend ( I believe) using the B-Line and 2 x indicator template. Ideally 111.20 of a 50% RT. Wait to see the behaviour around the reaction line. We may fail on first attempt to get up and thru it so beware picking a long here. Maybe it will zoom straight thru?

Long Sugar SB H14 ( NYBOT/ICE #11) @15.95 plus Spoo's

Long 15.95.Objective 16.60 stop 15.80

 Emini S & P

The emini S&P plus the VIX and the high probability trades from horizontal median lines and reaction line combo setups

Remember this green horizontal pitchfork from previous posts in recent days? If you read my coursework and my own advances in reaction line & pitchfork theory you will know that my own study and observations reveal that horizontal PF's have a 45% greater probability of pivot formation/creation at their centre lines than normal Andrews PF's that can be highly unreliable when used alone. This doesn't mean to say that we are seeing a bottom here but you can say with alarmingly high probability that you will see a bounce of some degree or other.
Expect a second touch on this green CL now and possibly a penetration.

Here below are the same charts as in the previous post. Remember all reaction lines here are drawn by auto indicator and even tho i may manually thicken them they are not arbitrary trend lines or multi pivot lines

 Below FNL forks reveal the line of first resistance ( reaction lines) using the end of the first impulse wave  in the VIX and also show a classic Andrews PF in black

 using two different pivots

Close up