One of the methodologies I use it to look for penetrations of ‘net-lines’, which then ideally indicate a move to the opposite Keltner channel. We noted last spring when a buy net-line was penetrated on the weekly S&P cash index chart. It’s worth following up to show that when the S&P topped at 956, the channel at that time was at 960. A pretty good result!
click chart to enlarge
Now there’s a new net-line sell level on the weekly chart.
That level is at 881.46. A weekly close below that level in the next five weeks would indicate a move to the lower channel, which is now at 685.