Thursday, May 07, 2009 10:06:28 AM
Updated Charts:
Based on the rather extreme positions the market is now in, I suspect the 10-week low (anticipated to complete by May 13) will morph into a the next 2.5-week cycle in a consolidation phase. I don't anticipate seeing anything lower that SPX 840 by the first week of June--based on the current bullish pattern. The essence of my method is to stay with the tune being played unless and until there is a clear signal to the contrary.
A move this vertical is rarely sustainable over the long haul, but I've learned to give up trying to predict *when* it will break. Instead, I will expect little more than a mild pullback over the next couple weeks--unless we get a more clear signal.
Based on the rather extreme positions the market is now in, I suspect the 10-week low (anticipated to complete by May 13) will morph into a the next 2.5-week cycle in a consolidation phase. I don't anticipate seeing anything lower that SPX 840 by the first week of June--based on the current bullish pattern. The essence of my method is to stay with the tune being played unless and until there is a clear signal to the contrary.
A move this vertical is rarely sustainable over the long haul, but I've learned to give up trying to predict *when* it will break. Instead, I will expect little more than a mild pullback over the next couple weeks--unless we get a more clear signal.
Strip price to the barest data that tells us BUY, HOLD, or SELL.
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