Chart and Data Download SRT20100106
Thursday Morning 8AM Jan 7 2010 Comment for Wednesday''s Close: Forecast remains bullish until the S&P reaches chart Objective at the upper red envelope,now S&P 1155-ish. Market looks down today but perhaps not by much for the reasons below.
As the rally continues it should not peak until the cash S&P at the days high is at or above the level shown in 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 now a probable forecast for this eventual peak in time. If so, we probably have more time for strength into its projected top date to develop via short covering, etc.
Right now 3 days of the Arms Ratio is getting low suggesting a somewhat overbought condition is forming. A day or two of correction shouldn't upset the small T. So many traders were in denial of the new uptrend indicated weeks ago by the strong uptrend in the AD Line, I have noted in the chart,that the change in trend should bring in new buyers or short covering on any small correction.
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