Chart and Data Download SRT20100112
Wednesday Morning 8AM Jan 13 2010 Comment for Jan 12 Close: Forecast remains bullish until the S&P reaches chart Objective at the upper red envelope, now S&P 1162-ish.
The rally should make a final thrust to, or a bit above, the red objective now 1162 according to my Envelope Theory, after which a 5% correction is likely to the mid channel level in the data.
Alternatively the small red T will cut off the current rally after another bounce. The Arms Ratio is good enough to hold the market for this smallT's final rally. If the rally can't reach the upper envelope a correction is likely but not 5%., that is, not to the mid envelope level at S&P 1099. Envelope Theory requires the S&P to touch the upper limit before testing the mid channel.
If this rally should fail then a new small T will appear after Jan 21 and the upside objective will remain in effect. The decline is limited to the mid-channel due to the Short Range T noted in yesterday's post. You can read it below.
See Recent Posts at bottom of page. 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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