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 Note; I believe mail addressed to me at T Theory foundation from this site has had a problem since Jan 31 but works fine if you go to T Theory Observations and use that email link Terry Laundry's T Theory Observations. My web master is on vacation for two weeks so the problem needs this work around. Just re-send questions or comments using the link at Observations. Terry
Thursday Morning 8:00 AM February 4 2010 Comment for Feb 3 Close: T Theory Forecast remains bullish for the longer term based on the long term AD T #13 but the S&P broke down below the mid-channel support noted in the chart and this is negative. Also an Arms Sell Warning should insure the S&P will fall to the lower green envelope currently around S&P 1048 over the next week or two. See the Feb 2 Post below for Arms discussion.
So a new "hard" decline is now likely that will not end until new lows are seen near the green channel envelope. That oversold condition needs to produce a solid buy for the run up to May. Mostly we will need to see a string of big numbers on the Arms like we saw yesterday.
Later I will introduce alternate constructions for the Short Range T # 3, but for today I will just continue with the next small T shown in red with the volume oscillator plot. In the days ahead we need to see a new cash build phase under the green line that can become the left side of a new small T. There is no way to project the next low via T Theory but there is evidence it could be messy and it is possible the AD Line will go back towards the early November low. That is an extreme case but the short term picture does call for risk reduction in the event of a worst case.
Now that I archive these daily posts I will start answering technical questions here and adding in a few mini-tutorials. For the next few weeks these topics fall into the category of controlling market risk with T Theory concepts.
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.
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