Chart and Data Download SRT20100114
Friday Morning 8AM Jan 15 2010 Comment for Jan 14 Close: Forecast remains bullish until the S&P reaches the chart Objective at the upper red envelope, now S&P 1165-ish in the table. However time is rapidly running out for the Tiny Red T in the chart and it appears that the upside momentum is diminishing as is normal when approaching a T's projected peak date.
I would expect that after any strong bounce in the next few days the market will run out of upside momentum and a modest correction will take place. The blue Volume Oscillator will have to fall below the zero line and the Arms Ratio will need to rise to high numbers before the Main Short Range T can resume the up trend.
The Green AD Line which is in a strong uptrend is obviously rising with the bigger Current Short Range T's trend projected into May, so the correction is likely just to be an interruption to the basic bull market advance. It is difficult to reach any more definitive forecast because the channels are narrowing and there is not enough volatility to draw any more small Ts.
But generally we should see a peak in the days just ahead and the subsequent correction should provide a better buying opportunity later when we have more data. Terry
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