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.
good commentary inlet
ReplyDeleteI 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.
ReplyDeleteThanks 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
ReplyDeleteBest, I like your odds for a short duration downturn. Good luck fishing.
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