Market Update:
SPX Daily, Weekly & Monthly remain bullish.
The SPX Daily is showing signs of a larger pullback. The PPO remains bearish and now the MACD is attempting a bearish crossing, also the RSI(14) has dropped below the 70 line. So we could start seeing a more sustained downward move.
If the SPX Daily opens below 1164 on Monday a new SPX Daily Phase I cycle could be under way. For a new Weekly cycle the SPX would have to drop below 1138 and for a new Monthly cycle the SPX would have to drop below 1100.
The average SPX Daily Phase I cycle probably averages about 5 trading days. This data is based upon the QLD Daily cycle data as they have pretty much mirrored each other from the data I have currently compiled.
The current SPX Daily Phase II cycle has lasted 28 trading days with a low of 1044.5 and high of 1180.14 a gain of 135.64 points. That is an incredible rally thus far. The question is, is it over with? Is this the beginning of a ST pullback? MT pullback? or major correction?
I would say a better that 50% chance for a ST pullback, 30% for a MT and 10% for a LT.
A ST pullback could go as low as 1150. Below that the MT pullback comes into play.
JMHO, Lindy
"Buy low, Sell high, stay with your system. If your system breaks fix it."
