Tuesday, January 15, 2013

Charts 01-15: Very close now

Like to see us pop up to 1476 in the morning before reversing and selling off.  The 1576 peak was a spike high reversal that immediately gave back 30 pts.  This also keeps us from having a pesky gap up here at the (presumed) top.

Also, the McClellan Oscillator was nearly unchanged for the day.  A big move is coming soon.


Christian Gustafson said...

This E-D wedge looks too steep and constrained -- it may only have about 3 of its 5 waves in, with a pullback for W4, and a final 5th wave rally coming into EOM January.

I'll play with this and see how it affects things. The 2007-2009 "model", carried into the present-day, was wrapping up a bottom in mid-June.

A delay of a couple of weeks on that model would put that first bottom around July 1, which makes sense in terms of seasonal cycles.

Christian Gustafson said...

FWIW, I moved the projected top on the 2007-2009 repeat model out to January 25, at SPX 1486.

Any pullback we get from this level should be a wave 4 of the E-D-T.

Christian Gustafson said...

S&P can reach the 400s in late 2014.

Check in with me then. Thanks for posting!