The brief rally I was referring to last week happens as expected target 1000 SPX. It's a quite reliable scenario with such a steep drop below weekly and monthly Bollinger, especially within a capitulation, to have a sharp and brief rally back to the Bollinger point. As you can see, we are anyway in strong support territory at Friday's lows. Another thing at big support points is a retest at some point and I still stick to early November as the point at time of a substantial low - or end of this leg to put it into the right context. The VIX SEQ 13 worked as well temporarily but we might have to finish the COMBO 13 - last count was 10. I still count the current upmove as wave 4 up and we need final wave 5 down. We've got to follow it closely to see how it turns out. As a matter of fact, this is an interesting week, as the mercury retrogade motion ends on the 15th and the 14th is a full moon in Aries, which is in a square to Jupiter, so we can expect wild market swings. The basic momentum will remain to the upside though for this week.
Monday, October 13, 2008
SPX technical update for this week - expected snap back rally rolling
The brief rally I was referring to last week happens as expected target 1000 SPX. It's a quite reliable scenario with such a steep drop below weekly and monthly Bollinger, especially within a capitulation, to have a sharp and brief rally back to the Bollinger point. As you can see, we are anyway in strong support territory at Friday's lows. Another thing at big support points is a retest at some point and I still stick to early November as the point at time of a substantial low - or end of this leg to put it into the right context. The VIX SEQ 13 worked as well temporarily but we might have to finish the COMBO 13 - last count was 10. I still count the current upmove as wave 4 up and we need final wave 5 down. We've got to follow it closely to see how it turns out. As a matter of fact, this is an interesting week, as the mercury retrogade motion ends on the 15th and the 14th is a full moon in Aries, which is in a square to Jupiter, so we can expect wild market swings. The basic momentum will remain to the upside though for this week.
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