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Monday, January 12, 2009

SPX technical update

The SPX counted a daily SEQ 13 today and made a hourly 13 in the last hour. Basically that gives a probability that we have seen the low for this week as we are in expiration week. As mentioned in earlier blogs for now the 850/60 support might hıold but within the next 3 weeks I rather expect a test of the 815 support at least but actually even the retest of the lows is a probability for this wave. It will happen at some point of Q1 2009 and the current price action hints for the current wave to play out as wave 5 down. The confirmation though is due next week as more indices will print SEQ 13's and to drop below that at some point is a technical evidence of bigger downside momentum. The weekly charts do imply that as does the VIX once the 13 counts have been finalized to the downside.

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