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PnF charts

If the $SPX PnF chart shows a bullish Price objective, but the SPY PnF chart has a bearish price objective, which is more reliable? TIA

Best Answers

  • KevoKevo
    Accepted Answer
    The default PnF charts for each show different ranges. Try adjust settings for them to both have the same chart range, or try changing reversal box count from 3 to 1.

    Note that the less range $SPX PnF chart shows an active bearish trendline even though it has a bullish price objective.

    Note that $SPX is still in a long correction.

    $SPX is more reliable because SPY had selling pressure/tracking error on 24AUG. PnF charts use high/low and the SPY low was off more. See this post for more details:

    http://scan.stockcharts.com/discussion/590/s-p-500-anomaly-on-monday
  • markdmarkd mod
    Accepted Answer
    Sorry, not knowledgeable enough about P&F theory to answer. But if you do a scale factor of ten on SPY, and a scale factor of 1 on $SPX, both have a bearish price objective.

Answers

  • I'm not sure why the $SPX PnF chart is still showing a bullish price objective even after the breakdown? Hi @gord @markd
  • Thank you and as always very helpful responses. I will look at the charts again with the info provided.
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