Possible Swing into 1250 by early next week back to BOT Short for a Day

At this point I cannot rule out a possible huge swing down into 1250 right into the Marty Armstrong cycle date of June 13, 2011.  It could serve as an important low or at least a temporary low.  This may occur into Monday or Tuesday of next week.

So far the follow on action from yesterday looks horrible.  So will have to just wait and see how it all shakes out.  I stated many times about how 1250 was a huge magnet so maybe that is exactly what will occur into early next week on the Marty date.  Will switch back to BOT short signal right now at 1273 for a day or two on assumption that we will swing down massively into 1250 as a low.

RSI is setup in a zone for a plunge below 30 in which case price action could get ugly very quickly.

Still I think if we do rapidly hit 1250 on the Marty date it will be some type of short term or intermediate term low for the market.

At this point the only thing that will save the long side is some type of hammer reversal type close by end of day today with the market only down a handful of points…

Posted in SP500
4 comments on “Possible Swing into 1250 by early next week back to BOT Short for a Day
  1. RMT says:

    Terrible bottom long call yesterday. SPY is approaching 200 MA and the pivot low from 3/16. If it gets there next week, that will be an excellent swing long entry point for a week or so.

  2. Lee says:

    Hi Tom

    Thank you for your nice work! Market analysis has never been easy, and you have done a great job so far. Of course, nobody can be 100% correct.

    Everybody is waiting for 1250 to go long, and can it be that simple? I think the bottom would be much lower than that. Let’s see….

  3. Tom says:

    That’s life my friend… what can I say.. I got most of the decline way up from the top… but got a bit too cute on trying to catch a falling knife…

    possible capitulation early this week and then foothold at 1250..

  4. Tom Tom says:

    I am pretty sure that near 1250 will be a spot to go long, but I am not saying that is the final bottom, just some type of bounce and then the market maybe work it’s way down again.

    My premise is the SPY volume spike near 1250 of between 400 million to 500 million shares.. currently we are zooming down with only 200+ mill… so not enough energy in my opinion.

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