Thursday, October 20, 2011

10-21-2011 outlook

Today we got another data point that seems to support the idea of a rounded top.  Tomorrow noon or a little later we should have the 2.8TD and 5.6TD cycles topping.  This may give us some upside push.  To keep with the rounded top theory it should not exceed 1225.  Then we should sell off toward the close (2.8TD, 5.6TD, and 22TD cycles down at the close).  So overall I think we rally some (not a lot) into mid day and then sell off toward the end of the day (I doubt with what is happening in Europe people will want to hold over the weekend and that fits our expectations for Friday).  The French and Germans haven't agreed on anything for 200 years - is there any reason to think that will change this week end?  Hehehe.

Here is the SPX swing cycles:

GL traders.  Be careful, do your own analysis.

1 comment:

  1. Phil Davis seems to be bullish this am, figuring Germany & France will come up with something.

    Keystone's trading algo "Keybot" turned bearish yesterday. However, with the futures presently green, it could quickly flip bullish.

    I still only have a 1/2 position in my SDS calls. Might add today if the market really roars to the upside.