We have reached the extreme point of this leg not in absolute terms probably but in relative terms as we have exhausted all means from counts to trend channel resistance. Bollingers and Fibonacchi levels - we may still creep higher towards 1211 (close to the 200 week MA) but basically we are done and the correction is due. From now on the longer it takes to materialize the more powerful the correction will deploy. We are in market terms very close to the situation of April / May 2007 before the over 10 % decline started which was followed later in Oct by the start of the big crash. Some differences appear though as back then people were in denial of reality ( kind of the same as now) but the FED had not lowered the rates - stop again the BOJ did the same and still we made new lows. Well but Japan was helped out by a stable global economy - bummer that does not work this time. The FED could literally throw money from helicopters but than you should not be stocks since inflation will rise faster than any index - that's a loosing trade. Short term we are in for a ride down to the 1050-80 area (50 week MA)- which will likely be the area manipulators from the FED to their puppet masters will use to bring us back up for a little while before a crash like mode will trigger panic as the propaganda turns into a big minefield for DC with economy not really improving at all.
Tuesday, April 13, 2010
SPX update
We have reached the extreme point of this leg not in absolute terms probably but in relative terms as we have exhausted all means from counts to trend channel resistance. Bollingers and Fibonacchi levels - we may still creep higher towards 1211 (close to the 200 week MA) but basically we are done and the correction is due. From now on the longer it takes to materialize the more powerful the correction will deploy. We are in market terms very close to the situation of April / May 2007 before the over 10 % decline started which was followed later in Oct by the start of the big crash. Some differences appear though as back then people were in denial of reality ( kind of the same as now) but the FED had not lowered the rates - stop again the BOJ did the same and still we made new lows. Well but Japan was helped out by a stable global economy - bummer that does not work this time. The FED could literally throw money from helicopters but than you should not be stocks since inflation will rise faster than any index - that's a loosing trade. Short term we are in for a ride down to the 1050-80 area (50 week MA)- which will likely be the area manipulators from the FED to their puppet masters will use to bring us back up for a little while before a crash like mode will trigger panic as the propaganda turns into a big minefield for DC with economy not really improving at all.
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