Monday, 10-22-07

The expectation of a drop into the 1520s to 1500 was realized Friday as a mini crash on the 20 year anniversary of 1987 played out. By Tuesday the market should be stabalized in rally bounce mode with the 60 minute chart ma as resistance. This entire week should be a up bias week after some open selling Monday then a quality low the first week of November is expected.

Friday, 10-19-07

The SnP did trade in a slow sideways pattern allowing the stochastic to achieve the upper 90s. Resistance Friday will be the 120 ma at 1549 to the collapsed upper band on the 60 chart at 1551. Friday should be a up bias day then lower into the 1520s next week for a buy set up.

Thursday, 10-18-07

Wednesday the index did open to the 1550 area almost touching the moving average and dropped sharply to the area of 1525 as expected. We shorted the high and put 20 SnP futures points in the bank.

Today should be a slow sideways day with a slight down bias allowing the stochastic to reach overbought by the close Friday. Next week I look for another sharp drop into the 23/24th. We may see a test of the low made on 9-25 by the 23rd.

Wednesday, 10-17-07

The 60 and 120 minute charts are almost exactly aligned. A bounce to the moving averages is expected today then lower to 1515-1500 areas.

Tuesday, 10-16-07

This is going to be an interesting market the next two days. We finally get a quality low at 15:30 and the ma is all we should get out of it as cycles are turning toward the downside late today. It would be a major surprise if the market can trade and close above 1558 today, odds are it stalls there and begins a two week correction toward 1500.

Monday, 10-15-07

The sharp drop Thursday is a solid indication the move up from August is a completed wave. Late Monday to Early Tuesday is a cycle turn time zone with cash index 1567 to 1570 as the projected high. The weekly up cycle projected high is at 1584 and since wave "c" of C is an extended wave a new high for the move is not unusual and if we do get the cash to 1584 areas the next leg down will drop to 1500 very fast. There is a huge call open interest at 1525 so expect a drop to that level before Thursday. If support fails at 1515-1500 odds increase the AB top for the four year cycle has also topped. The 1525 to 1515 area has to hold for the market to achieve the 1605-1635 favored target in November.