Friday, January 7, 2011

Intermediate Cycle High ?????

The Equity markets are becoming quite over-believed and a correction of some sort is imminent. The amplitude and duration of the anticipated correction will define the status of the secular trend. I think that a trade-able short is on the horizon.
The area to watch is 1248-1254. There are several price relationships that delineate this spot as being of strategic significance.
  • Minor Swing point at 1254
  • Dec-Jan Lunar pivot point at 1255.85
  • 21 day mvg ave. @ 1254.75
A close below this level would indicate that a intermediate term top may have been formed since both daily and weekly charts are in over-bought territory and the current time frame is harmonic with the April-July decline: The time from the July low to the present is 1.50 times the length of the radius representing the Apr.- July decline. The November 5th high marked the time as being equal to the radius of the cycle.

1 comment:

Anonymous said...

We are being halted by the INDU approximately at 11,725 +/-for a reason (NOW)although 11,750+/- is an obstacle. Look very closely at the "curve". Nice post!