Here are the important price levels to monitor:
- geometric fan lines from previous lows are at 1398-1410 and 1367 with the former level being the most significant.
- 720 degrees (2 Gann square cycles) from the July 28th low at 1155.90 equals 1444--which is very close to the recent high.
- 1382.60 low swing pivot is quite important--a break of that level would suggest lower prices in the near future.
The are several geometric cycles that line up for a potential trend change in the current time frame.
- December 3 2009 high + 480 calendar days = March 28 2011
- June 28 2010 high + 270 cd = March 25 2011
- July 28 2010 low + 240 cd = March 25 2011
- Dec 7 2010 high + 120 cd = April 6 2011
- January 27 2011 low + 60 cd = March 28 2011.
There are several geometric cycles due in this time frame--hence the ENERGY DATE WINDOW--that could be the start of a resumption of the recent downtrend--especially of gold decides to tank!!!!!!
Bottom Line: Until the 1173.00 level is broken on the downside the BULL has control of the market and it is my belief that eventually the 1360-1365 level will be tested--likely in June of 2011. If the S&P tests the 1360-1365 level coincident with a Energy Date--especially from mid May to mid June--there may be a case to look for further evidence of a MAJOR top being made which will be followed by a significant--and VERY TRADABLE decline.
The 45 degree geometric fan line from the November 16th low of 1173 is at 1301 on Monday and is rising 1 point per calendar day.
If the 1301 level is broken lower prices can be expected short term.