Short Range T Theory Comments for January 27 2010 Data

A Daily Chart with Data and my Comments will be Posted here by 8:30 AM Eastern Time or Noon on Weekend the following morning, baring technical problems or  prior notice. My Data Source is  Markets Diary: Closing Snapshot - Markets Data Center - WSJ.com

Chart and Data  Below (Click on Image for bigger chart)

 
 

Special Update: 11AM January 28; The severe weakness at this point of the day is very negative for the near term. I am selling longer term positions on the assumption that we will see a break down to the  green envelope  at the 1046-ish level in the days ahead.

Thursday Morning 8:00 AM Jan 28 2010 Comment for Wednesday Jan 27 Close:   T Theory Forecast remains bullish for the longer term but we need to see the S&P get above mid channel (S&P 1104) and stay above it, effectively preventing the slide off the small red T from doing any long term damage.  In the days ahead I will be concentrating on the Volume Oscillator  and AD Line analysis to refine the eventual outcome. I will do a "big picture" analysis this Sunday at TTO.

Wednesday's trading confirmed the expectation of a W Bottom ? in the volume oscillator which is the normal way an oversold turning point identifies a reversal.  From here on the forecast is straightforward as the turn will produce a general market rally at least until the blue Volume Oscillator rises to the zero line. This should carry us into early February. Terry

See Recent Posts at bottom of page. Check my Sunday TTO Update   Terry Laundry's T Theory Observations for this coming Sunday afternoon for bigger picture details and further comments.