comments and outlook 05-24-2011

Today a lot of built downside pressure got released.  After such an event at least a small reversal is normal.  And we got a bit of reversal late in the session.  We may get a bit more early tomorrow.  After all the 22TD  and 11.2TD cycles are up.  The 5.6TD and 2.8TD cycles are down. So we would not expect much of a move either way from these cycles.  So I expect later in the day the longer 1 year down leg may again assert itself (but not to the same extent as today). 

So I think we see some up early and late down later in the day.  1310 seems to me will provide support (see lower trend line on chart, and it is a FIB number):

I believe I incorrectly stated the position of the 20 week (Wall) cycle the last time I spoke of it.  So I have provided a chart showing the longer cycles that are influential at this point:

Gl traders.  Do your own analysis.