Tuesday, January 8, 2013

Charts 01-08: A little more drop

I'm of the opinion that if we're going to have a big bounce, we need to bounce off something.  The .382  retrace, the 10- and 13-day SMAs, and a pink line on the chart are all just below us.  So I'm looking for a drop to 1441 in 5-waves tomorrow to finish the retrace.  Then the market is free to go batshit crazy for a few more days and a final rally top.

Overnight /ES futures looked a little worrisome, but have bled off and will probably roll over in the morning once again.

With this sluggish tape, I'm pushing the spreadsheet model ahead one day, for a possible top as early as this Tuesday.  This actually lines one of the turns up with one of McHugh's phi mate turn dates, but I won't mention the specifics here until it has passed.

SPX 01-08

1 comment:

Christian Gustafson said...

It's looking now like the IT low may be in, and we are headed up to 1510.

If so, we should see all kinds of divergences up in the aether.