In my last post, I mentioned the rally is ending soon, but so far we have not seen any confirmation of a change in trend to down yet, as all trends remains firmly up.
This past week we were up +4.51 SP's as we continued sideways to higher in a potential narrowing wedge, which suggests we should see a relatively sharp break once complete.
The Master Cycle needed to be fine tuned and updated to incorporate the current rally phase.
The updated Master Cycle2 (MC2), since the 12/19/11 Lows projected a 68 Calendar Day rally into 2/25 High (2/24-27) or a 48 Trading Day rally into 2/29 High, which is both a 2/29 geometric CIT and a VIX Apex CIT.
The Master Cycle2, in Cyan (click on chart to enlarge):
1. 10/4/11 Major Low
2. 12/19/11 Major higher Low
3. 1/30/12 higher Low
4. 02/24-29 Major swing High
There are several other reasons to look for a 2/24-29 High:
1. 2/24 is 45 TD 12/19/11 Low
2. 2/24 is 55 TD 12/05/11 High
3. 224 is 81 TD, 9 squared 10/27/11 High
4. 2/28 is 100 TD, 10 squared 10/4/11 Low
5 . 2/24 is 121 TD, 11 squared 8/31/11 High
6. 2/25 is 144 CD, 12 squared 10/4/11 Low
7. 2/25 is 233 CD 7/7/11 High
8. 2/28 is 750 TD 3/6/09 Low
9. 2/27 is 40 squared 10/11/07 High
10. 2/28 is 33 squared 3/6/09 Low
We should see a sharp break after this 2/24-29 High is complete, but we need to see a clear downside reversal to confirm that the highs are in.
