Wednesday, June 1, 2011

comments and outlook for 06-02-2011

An interesting day.  I could go on about up vol vs down vol or advances vs declines and other technical issues, but most everyone else will do that - so I won't.  If you look back at yesterday's projections I believe today most closely represented the projections I had for a 22TD cycle (vs a potential 34TD cycle).  So for the time being it appears to me the 22TD cycle is still in play.  I will continue to monitor for any change.

Assuming the 22TD cycle is in play we should see the 11.2TD, 5.8TD and 2.8TD cycles bottoming before noon.  The 22TD cycle should top and turn down.  Given this alignment of cycles the morning should be down (probably at least test 1310 FIB level).  If we gap down at the open we may test the 1294 FIB level.

In the afternoon we should see a rally attempt off a late morning or mid day bottom.  I suppose the open sets the tone for the day - if the market gaps down then we probably close down.

Here is a visual:
GL traders.  Do your own analysis

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