1987 was just not meant to be

The market turned around today and the mega plunge was just not to be.  In the AM I was looking for a gap and go type move that would lose all price support.  Instead the gap turned out to be exhaustion move and I suspect we are going higher next week.

This does not invalidate the intermediate term bearish picture.  In fact what may develop from here going forward could be more bearish than before because now more market cause will be built for a break of 1055.

We could start building a W bottom now with a right handle.  That handle may extend into June and setup  for a huge decline going into July August 2010 time frame.

I have come up with a good way to determine when the epicenter of the next major major decline will occur and will monitor that closely.  It is more of an intermediate term type signal and relies on the weekly charts.  But it is consistent with the astro time frame of July and August 2010 being highly volatile.

Since the market came down so hard into this astro aspect we have this weekend I can only think that it is serving as a low and will stop this market for a while.

Had it been a high, then the potential would have been much more bearish in my opinion.

Posted in Market Timing, Online Trading, SP500

Leave a Reply

Your email address will not be published. Required fields are marked *