Wednesday, November 7, 2012

Charts 11-7: Three options

I'm still amazed at the tremendous brass balls on the Obama folks for using such an historically-charged slogan as "Forward" for his campaign.  But that's all history, the Presidency is all his now to enjoy as we head into the Long Emergency.  A whole constellation of old GOP stars is now extinguished, bunch of has-been losers, an important step to the dismantling of our current institutions and what remains of their shaky legitimacy in the days ahead.  Both parties are doomed, as is the entire arena where they play.  Good riddance!

We threw a pin into the important lower trendline from 1074 through 1266 today.   Therefore, I think we completed a wave 4 and should rally.  McHugh thinks it could last into the end of the year; I'd like a sharper, shorter rally, jammed up hard into November opex.  This leg would compare to the original rally off 1266 to 1363, and end by reaching the trendline from the 2011 high at 1370.

That would still give us plenty of time, and a route through the various obstacles, almost to reach Goldman Sachs's napkin target of 1250 SPX by EOY.  I'd like to see us land on 1266, for horizontal support as well as a Really Important Trendline up from the 2009 lows.

Here are three options for the rest of the year on one chart ...

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