Short Range T Theory Comments for January 8 2010 Data

Chart and Data Download SRT20100108

Saturday Morning 8AM Jan 9 2010 Comment for Friday's Close:   Forecast remains bullish until the S&P reaches  chart Objective at the upper red envelope,now S&P 1159-ish. 

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 Channel Objective is reached.

The small red T  and the larger blue T are jointly  forecasting an eventual peak time wise at their respective right end dates. The stealthy strength in prior weeks for the green AD Line amounts to an accelerating demand  going into a top which invariably is caused by "panic buying" and "short covering". 

A sharp decline can  then be expected back to the mid channel number (S&P 1096 and also rising) usually begins a day or so before the small red T's projected peak (Jan 21?) The 5% correction can be bought because other larger Ts are still bullish, but a series of high Arms numbers would need to be seen first.

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.