Saturday, October 22, 2011

The end is near

On this chart i have drawn blue vertical lines at extremes.
May 8ht-09 in 5 td we went from 929 c to a low 878 =51 pts
9-22-09 in 3 td 1071 to 1041 = 30 pts
4-14-10 in 16 td 1210 to 1065 = 145 pts we did hit 1219 on way down.
11-19-10 we wentin 5td from 1199 to 1173= 26pts
So a pull back is near then reassess. My understanding is that back in Oct 1974 we had a rally like this that in Nov-Dec fell hard.

Update Monday night

Today i had the highest system number 14C TD from the 1074 spx low.
I had to go back to MAr 2009 just 14C TD from the 666 low.

Bottom line if we open lower you could plunge 53 spx point in 2 days before the rally resumes.
Well that was what we did in 2009

INSANELYOVERBOUGHT !!!!!!!!!!!!!!!!!!!!
2 weeks in a row so a repeat of a Monday big hit?
Looking at the color day we could expect Wednesday to be big reversal since it is blue!
Correction a Green day so not sure.

click on image to enlarge

Wednesday also has a proprietary count as a high.