The Market took out the most recent 7/28 highs, making that high a non-event in my work and is now likely to make higher highs into 10/2 Highs.
This makes me less bearish, especially how OCTOBER has barely arrived and Bears are growling all over the place.
A brief decline into 10/4 and 10/9 Lows are expected before the next rally starts. 10/9/07 is the next Major CIT in my stuff.
3 comments:
The SPX and RUT have made 5 wave moves finally catching up with the DOW and NASDAQ and NDX. QQQQ (Put)options I have been tracking have been cut in price by about a third since 9/19. If the fractal I am tracking is correct we should get a top tomorrow but the decline will not accelerate until mid October. We should start an A-B-C decline or a 1-2 soon. The Rut should lead this decline.
I want to be clear that I am only bearish for the short term. I think this next leg down will last most of October now that most small traders are bullish. After this leg down we should get a very strong rally. If it materializes the rally should be rather easy to play because the money comes in at certain times during the month.
I agree, Market is long term bullish, the pullback looks shallow and restrained to the upper 1500-1505 SPX area. Although unlikely, if we brake that area, we can look for a stronger downmove.
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