Glass Ceiling Bullish or Bearish?

By: Joseph Russo | Tue, Jan 24, 2012
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We have all heard of the proverbial "glass ceiling" in the business world where one attains a certain level of achievement and is unable to advance any further.

Glass Ceiling Bullish or Bearish?

Well, the same thing happens to share values from time-to-time. They reach a certain price level, and no matter how hard they try, they are simply unable to shatter the glass ceiling overhead.

Price charts clearly reflect such episodes and offer some analog-based clues as to what may manifest following these prolonged battles at overhead resistance.

We provide two such examples below. One is an analog from the distant past, and the other is playing out in real time. Both are major equity indices. Can you recognize either of these popular equity indices?

Glass Ceiling

Does either of these look familiar? What indices are they? Which is the old, and which is the new?

Glass Ceiling

The first index on top sports 6-tests at the glass ceiling of resistance, while the second index shows five attempts at breaking through the resistance barrier.

If you think you have identified either of these beauties, which is the chart of the distant past and what was its outcome? Which is the chart currently unfolding in real time? What are the general time-periods of both the old and the new?

Well, that's all for now. Don't worry, we won't' leave you hanging for long. In the next few days, we will provide a follow up piece with all of the answers along with some forward-looking analysis as well.

Do reply with a post or send us an email with your best guesses.

What do you say we make things a bit more interesting?

How about:

We will give you one last hint. One of the indices is a chart of daily closing prices, while we have rendered the other using a chart of monthly closes.

Now post/mail in your answers and we will report all winners with the follow-up feature and analysis by the weekend.

Until then,

Trade Better/Invest Smarter

 


 

Joseph Russo

Author: Joseph Russo

Joseph Russo
Chief Editor and Technical Analyst
Elliott Wave Technology

Joseph Russo

Since the dot.com bubble, 911, and the 2002 market crash, Elliott Wave Technology's mission remains the delivery of valuable solutions-based services that empower clients to execute successful trading and investment decisions in all market environments.

Joe Russo is an entrepreneurial publisher and market analyst providing digital online media solutions designed to assist traders and investors in prudently and profitably navigating their exposure to the financial markets.

Since the official launch of his Elliott Wave Technology website in 2005, he has established an outstanding record of accomplishment, including but not limited to, ...

  • In 2005, he elicited a major long-term wealth producing nugget of guidance in suggesting strongly that members give serious consideration to apportioning 10%-20% of their net worth toward the physical acquisition of Gold (@ $400.) and Silver (@ $6.00).

  • In 2006, the (MTA) Market Technicians Association featured his article "Scaling Perceptions amid the Global Equity Boom" in their industry newsletter, "Technically Speaking."

  • On May 6 of 2007, five months prior to the market top in 2007, though still bullish at that time, he publicly warned long-term investors not to be fooled again, in "Bullish Like There's No Tomorrow."

  • On March 10 of 2008, with another 48% of downside remaining to the bottom of the great bear market of 2008-2009, in "V-for Vendetta," using the Wilshire 5000 as proxy, he publicly laid out the case for the depth and amplitude of the unfolding bear market, which marked terminal to a rather nice long-run in equity values.

  • Working extensively with EasyLanguage® programmer George Pruitt in 2010 and 2011, the author of "Building Winning Trading Systems with TradeStation," he assisted in the development of several proprietary trading systems.

  • On February 11, 2011, he publicly made available his call for a key bottom in the long bond at 117 '3/32. Within a year and half from his call, the long bond rallied in excess of 30% to new all time highs in July of 2012.

  • For the benefit of members and his general readership, he responded to widespread levels of economic and financial uncertainty in the development of Prudent Measures in 2012.

  • He publicly warned of a major top in Apple on October 26, 2012 in the very early stages of a 40% decline from its all time high.

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