Friday, August 5, 2011

Quick review Cycles and the Trapdoor to Hell at 1260 SPX


Quick review of posts made in my private blog

1. My last commentary on this public blog on 7/8 was that we made a 7/7 Major High, which we saw  (#1 on chart, click on chart to enlarge)
2. Cycles were then suggesting a 7/14 Low, actual: NDX 7/14L, SPX 7/18L (#2 on chart).
3. We then rallied into 7/21-22 double CIT, making a double High with the 7/7 High (#3 on chart).
4. The next major CIT was Friday 7/29 Solar CIT and 8/1 Cycle CIT, which was an 8/1 lower High (#4)

The markets was looking for trouble when we closed below the Trapdoor to Hell at 1260 SPX Major support a few days ago. The markets also closed below the 3/16 Low at 1249.05 SPX, remains below the 200 DMA (1285), below the 1275 SPX 1X1 Line from the 3/6/09 Low. This remains very bearish.

We have declined into the 8/4 Geometric CIT and 8/5 Solar CIT, suggesting a short term Low is at hand, but Bearish Momentum remains strong, so be careful as cycles suggests this decline is not quite over.






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