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48

The following bar confirmed ihe congestion once and for alb I most certainty was iooiing at an A/\. It was ihe sixteenth bar of the range. 1 moved the segment on the "up" count as shown.

Just in case I v.as wrong, 1 numbered the segments going down,

The ne;t bar stayed in the trading range making a double high. I changed the segments identifying the trend by swinging the trend lines over to the latest high. At this point the up count was dead.

SP 5 HIHUTE

SP 5 HlhUTE

3 9

37B60 37840 37820 37800 37700 37760 37740 37720 37700

37660 37640 37620 37600 37580 37560 37540 37520 37560 37400 37460 37440 37420 374Q0 37300 37360

37860 37B40 37028 37800 37760 37760 37740 37720

37700 37600 37660 37640 37620 37600 37500 37560 37540

37520 37500 37480 37460 37440 37420 37400 37380 37360



Alternating reversal bars continued to identify congestion. This was tfie eighteenth bar. It was also 2;15 in the afternoon. Quite often the S&tP will make a significant rrove between 2:00 and 2:50 p.m. I wondered if this was a day in which it wouldn*t. t redrew the segment of the trend.

By now watching the S&P was getting boring, h seemed as if the excitement was over lor the day. However. I was determined to grind this out for purposes of writing this book. I didnt kiiow hut that there was a great lesson just ahead.

SF S nihUTE

SF 5 HIHUTE

3 8 9

ll, 1

7 60 37610 378Z0 37800 37780 37760 37710 377Z0 37700 37680 37660 37640 37620 37600 37560 37S60 37540 37520 37500 37480 37460 37440 37420 37400 373 0 37360

3

h, 1

37360 37840 7 20 37BOG 37780 37760 37740 37720 37700 376B0 37660 37640 37620 37600 37500 37560 37540 37520 37500 37460 37460 37440 37420 374G0 37360 37360



As the bar closed, I began drawing niy segment lines, I guickiy idemiJied them. This was the twentieth bar of congestion. The next bar might get somieihing started.

SP 5

J... sell

lllil

3 8

37 60 378-10 37BZ0 37BG0 3778G 3776G 37710 377Z0 377G0 37GB0 37fi60 37b1G 37620 37600 375B0 3756G 37510 37520 37500 371G0 37160 37110

37420 371D0 373B0 37360

Trie twentydirst bar of congestion didnt exactly sliake the earth, but U nad good mofnontujn. Maybe this was Ihe beginning of an uptrend?

SP 5

7 6 37010 37820 37BO0 37700 37760 37710 37720 37700 37680 37668 37618 37620 376D0 375B0 37560 37510 37520 37500 37400 37460 37440 37420 37400 37300 37360

3



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