Dec 27, 2014

Update

Last week SP500 closed above 2060 and the bearish weekly candle was negated. Now back to the idea for marginal new high before a bigger correction. The alternate scenario is blow off phase... personally I do not think that we will see such move when everybody is on one side of the boat.

Watch the price action - if I am right in the next weeks we should see a higher high with divergence and the price breaking below 2060... ideally we should see some indexes like DAX and NYSE not confirming the new highs.
If you are a super bullish support should hold and another strong move above 2100 should follow.

7 comments:

  1. carnap
    dear krasi,
    could be possible that we see another spike beginning January as a last exhaustion wave. But thereafter I see a sharp correction wave coming in correlation to what has been posted by you.
    Deflationary tendencies are still threatening: oil is still weak; the same for copper, Euro Bonds are running. Maybe we will see a shock wave. I have written a market summary and an outlook for 2015 that could be found on my blog. It is written in German language, sorry for that. For those who are interested: try to use a translator or ask me for translation of single parts.
    https://chartbuster.wordpress.com/2014/12/29/yearly-market-forecast-2015/

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    1. I will not be surprised to see a "shock wave".
      Ich kann Deutsch besser als Englisch, also es ist kein Problem für mich:)

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  2. Happy New Year Sir, any update on Jan chart? hope to have it soon :) all the best for you in new year

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    1. Happy new Year!!
      I was sick last week. I will start posting as usual from this weekend:)

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    2. Sorry to hear that, I hope you recover soon and back to normal soon :)

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  3. get well soon Krasi! we miss your updates. any thoughts on EEM, it has been gaining while SPX has been dropping. seems a bit strange.

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  4. SPX move lower is corrective, cycles says we are nearing a bottom so I do not expect the US indexes to sell off in the near future. A little bit lower than up and if I am right the last phase with the strongest sell off. So it is not a surprise that EEM is grinding higher.
    The caveat is if I am wrong there will be no correction.... better said we are in the correction but it stays flat in this range 100 and there is no serious sell off. When it is over another rally higher should follow and if EEM follow the other indexes we will have another a-b-c->X lower and another zigzag a-b-c->Z higher should begin.
    When I look at the chart above 41 is definitely a trouble for the bears.

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