- Posted August 21, 2012 by
Market Reverses at Babson Reaction Line
Today may wind up being a very noteworthy day. The Russell index, which has been struggling to make new highs for weeks finally went to a Babson Reaction Line and reversed.
This is significant as the ORE and the Babson reaction lines are typically seen at market extremes or weeks of months.
In addition new highs were made in SPY and at this time it appears that the daily pattern may be a Gann Key Reversal.
This type of a pattern often gets traders excited enough to act.
For weeks we have been waiting for the S&P to go up to a reversal point and then close below a line that would verify the reversal. It appears that this will occur today.