Sunday, May 1, 2011

Comments and the week ahead 05-02-2011

The 22TD cycles should top Monday or Tuesday.  Then the shorter cycles align Tuesday for a hard down Wednesday (could start sometime Tuesday),  I would not be surprised to see a 20 point pullback on the S&P between mid-day Tuesday and mid-day Thursday.  I believe though we see some recovery the last part of the week.

So it should be a volatile week.  I believe the bias is for a down week.  With a recovery starting by the end of the week into the middle of the following week which may test Friday's highs.  I do not see this as the start of the long awaited correction.  That will not start before mid-May at the earliest IMO, and possibly not until June.  So a "V" shape (maybe a square root) type of pattern forms?

Here is a visual:

Gl Traders, do your own analysis.  Read a couple of blogs and there seems to be expectations substantial in the way of a correction.  I believe these predictions are early.


  1. I am positioned for a downturn. Got in Friday as we are at Lake of the Ozarks fishing. Not gonna be doing much trading for a while.

  2. Thanks Kli. It was bound to happen that sooner or later I would say something that made sense. I still doubt though a monkey with a keyboard will ever write a Shakespearean play. Hehehehe

  3. Best, I like your odds for a short duration downturn. Good luck fishing.