SPX daily in a Diamond formation: SPX 1485 is a pivotal resistance within a diamond formation after a strong trend up since Jun-Jul 2006 bottom which is the 4yr/8yr cycle bottoms as noted on previous posts.
Breaking above 1485/1500, SPX will retrace to 1575 +/-; conversely, breaking below the lower Diamond TL support, it will retrace to the Jun-Jul 2006 TL support targeting 1250 +/-.
CYCLES update: SPX is in late stage of 8yr cycle after Jun-Jul 2006 4yr cycle low. Markets are in late stage of bull market near pivotal point. SPX consolidated since 10/11/07 high, forming a diamond top formation. While we do not have a confirmation of a top as SPX 1485 is a resistance which is a pivot for bull or bear case. SPX correction target is 1250 +/- which will be retracing 2006 rally. Additional note on EW count based on major market comparative performances.
20yr cycle low in 1995 and 2015 16yr cycle low in 2006 8yr low in 2002 4yr cycle low in 2002 and 2006
Performances of major markets since Oct 2002 low are DOW 60.18% and SPX 67.59, the two indices have performed comparable percent while NYA has significantly out performed other markets, 95.75%. Since 1995, SPX gained 215.56%, DOW 249.92%, and NYA 261.69% even though the market performances have shown volatility during 2007, SPX 4.66%, DOW, 7.92%, QQQQ 20.49%, and Nasdaq 11.46%.
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