A Daily Chart with Data and my Comments will be Posted here by 8:AM Eastern Time or Noon on Weekend the following morning, baring technical problems or my prior notice. My Data Source is Markets Diary: Closing Snapshot - Markets Data Center - WSJ.com
Chart and Data Download SRT20100105
Wednesday Morning 8AM Jan 6 2010 Comment for Tuesday''s Close: Forecast remains bullish until the S&P reaches chart Objective at the upper red envelope,now S&P 1153-ish. I have added a note in the lower data table for the columns which correspond to the Objective level in the Chart Channel.
As the rally continues it should not peak until the cash S&P at the days high is at or above the tabulated column for the upper envelope. It is possible for small correction of a few days to interrupt the rise to the upper envelope but a 5% correction is not likely until after the Objective is reached.
The small red T (Is this True?) is a possible forecast for this peak in time. If so we probably have about another week of strength.
Once this rally runs out of steam the big T should catch the next correction at the mid-channel support level. The practical problem that will arise is that market volatility has diminished to the point that the channel height(62 S&P points, about 5% currently) is shrinking, and errors in time will produce increased uncertainty. Using the Arms Ratio is a help. Right now the Arms Ratio is getting low (0.67) suggesting a somewhat overbought condition is forming.
Check my Sunday Update Terry Laundry's T Theory Observations for this coming Sunday afternoon for bigger picture details and further comments.
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