Advanced Trading Methods

[gloe]

Market commentary:

http://www.safehaven.com/article-6052.htm

On the SPX:

This chart is taking on the picture of an exhaustion move up. Notice how each correction has become smaller in both price and time-4 days at 31 points, then 4 days at 24 points, then 2 days at 18 and 2 days at 13. Or how each counter trend has found support at a higher and higher level in relation to the previous counter trend down. This is clearly a pattern of trend that is indicating an exhaustion move up is in progress. I've forecast this leg will end around the 16th of October. After this exhaustion is complete the index will go sideways and find a low either on 30 or 45 days from the high and resume the trend for another 90 calendar days to either November 30 or January 14. OR, if the index goes up into 135 calendar days from low and is still below the high, then the up trend will be complete, a secondary or lower high will be established and a significant move down will follow.

I can rank this as a very high confidence forecast. A high around the 16th followed by a sideways pattern, then either a secondary or lower high (November 30) and big run down or if a low in that time window then another 90 day leg up followed by an even bigger run down. This is definitely an exhaustion style of trend NOW and will be over by the 16th or sooner.