The Bollinger Bands are wrapped up very tight right now, this normally suggest a large move on the immediate horizon, my guess, a gap-up open for the 5th wave at tomorrow's open, then a quick reversal.
Here is a chart of the Corn Futures for the last year, it is now very close to doubling since the low back in July when it was near the $333 level, today's high, $649.50, at this present rate of increase, Corn could quadruple in a years period of time. It will not be long before these price increases show up in the market place, while at the same time peoples wages are stagnant at best. This is what happens during Hyper-inflation, thanks Ben, your QE2 has had the opposite effect you promised. Next up in the headlines will be story's of food shortages, then riots.
This is the best case scenario I can find for the bulls, a run up towards the 875 level in late February, before the Russell would hit the green median line of resistance, if it can stay in the current gray short-term channel. Please take the count with a grain of salt, it is my primary count, and there are numerous other ways it can be labeled.
Click here for a live, and updated chart!!!The squiggle count is still holding, but the SPX cannot drop down below 1277.25 without first making a higher high for the 5th, or else the 4th wave enters the 1st wave, voiding out the count. The Dollar took another beating last night and is down to $79.43, strong support at the $79 level needs to hold.
-When 8 States Defaulted: Could It Happen Again?
Hi Michael
ReplyDeleteTrend remain bullish possible more upside coming 20 or 30 points, but look to indic. DIF PRO Weekly chart.
SPX near new Major or Minor Top. Overbought conditions caution longs don`t expect large increases, don`t get too excited.
Bears will appear to scratch a little bulls pullback coming.
http://followmarketrend.blogspot.com/
Hi Michael,
ReplyDeleteKeep your eye on the HO today. If the market stalls or drops from here, we're likely going to get the signal. Keep in mind that Jim Meikka changed the requirements a couple of years ago and we no longer look at the 10 week moving average of $NYA, but whether or not today's market price ($NYA) is higher than it was 50 days ago. The number of required 52 week lows has been changed from 2.2% to 2.5% of stocks "that are changed". Unchanged issues are not included in that calculation. I've even heard a rumor that Jim changed that requirement to 2.8% although I haven't been able to verify that. In any event, for today at least, that's a moot point since the number of new 52 week lows is already at 2.8%.
If the market sells off, we're gonna get a signal, provided $NYMO finishes lower on the day (I know you know that... I only point that out for readers).
I love the work you do and thank you for it. When I get rich, I'll prove it. Keep up the stellar job you do.
All the best,
Dan