A Daily Chart with Data and my Comments will be Posted here by 8:30 AM Eastern Time week days or Noon on Weekend the following Saturday 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)
Tuesday Morning February 9 2010 Comment for Feb 8 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 still negative near term.
Currently I am looking for a new red Small T to eventually get the trend headed up to an early May peak, but don't think we are there for the final low just yet. Later in February we should see an accumulation low that identifies the turn up to the early May peak. It should be a new market high, but perhaps only a token new high.
Monday's decline has produced an Arms of 2.05 and the 5 day sum is looking better. The blue Volume Oscillator is starting to make a rising bottoms pattern and the downside risks are diminishing as we get to the lower green S&P envelope. The eventual low should see the S&P at the green line 1044 or a bit below because the high failed to reach the upper red envelope.
If you own positions, resist the tendency to sell on a small rally that will come near term. Let the accumulation pattern evolve at its own gradual pace and the reward will be a big short covering plus trader buying surge that will provide a good sell opportunity by early May. Terry
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