Marketmaven, what I see is an extreme overbought profit taking decline coming.
August should be very ugly.
September/mid October recovery bounce.
October all the way into year end the final washout.
All driven off the ending cycle count......
10 to 15% in August. By year end, SPX correction of around 25% - or could be worse.
Then come the new year, expect a very healthy five to six month rally. If we get the big washout this year it could lead to a new 4 year upward cycle taking us into 2011. We must get a big washout before the new cycle count can begin.
Then another flush (2011ish) to the final credit collapse washout, those lows should be lower than in 2002. But that is way out in the future for now. By 2013 we should have all this washed out of the system and a new long term rally will commence.
No matter how you slice it, 2007 into 2008 will be frought with risk long.
Add to all this - in January 2008 we reach the 397 month cycle high and in July 2008 the 402 month cycle high. Do some homework on these, 1929 was one of these cycle highs.
---All being driven by liquidity, so we have to search for clues as to what could stall it. Watch Yen, forming a nice bottom - unwinding of risk via carry trade would hammer US stocks.
West
Market Data 
Markets 
AI
