Oct 9, 2013
Signals
Short term signal: UP - activated today with divergence on the smaller time frames,it will turn down bellow 1651
Intermediate term signal: DOWN - it will turn up above 1680
Comment:The indexes are trying to bounce from oversold levels as expected. The perfect scenario will be a bounce for a few days followed by a lower low with divergence which will be a 20 week cycle low... than you know debt ceiling, problem solved, breathe again the world is saved:) and a rally for several weeks
Watch price behavior for clues:
- another leg lower - sell off breaking bellow 1670 <- that is what we see for now.
- fake break out and this is the bottom - reversal candle and strong rally moving above 1680 (MA50 and yesterday's candle high).
Levels to watch SP500:
- 1710 - resistance
- 1670-1680 - resistance level
- 1627 - support level
- 1598 - is major support.
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Krasi,
ReplyDeleteSo this bounce, when it ends, should give way to the larger decline into the January 2014 cycle low? I think that is your longer-term view but just wanted to make sure. Thanks.
Yes, this should be the last move higher before a correction into January.
DeleteToday looks very strong and impulsive so yesterday was probably 20 week cycle low and the next one - the fourth and last for a 18 month cycle has begun. It should top early and than lower until January.....