comments and outlook for 07-18-2011

As I pointed out in my outlook for the week the 22TD and 34TD cycles largely offset (as does the 65-70TD cycle and the 20 week Wall cycle).  So this gives us a  background for a sideways market.

The 22TD cycle has bottomed or should bottom no later than Monday and turn up, offsetting the downside from the 34TD cycle.  So all the action is going to be related to the shorter cycles.  The 11.2TD cycle is up Monday.  The 5.6TD cycle is also up Monday.  The 2.8TD cycle is down an should bottom by Tuesday morning (if I have the cycles correctly positioned).  So any weakness on the close Monday or Tuesday morning may offer a 1+ day trade to the long side. 

Here is a visual of the SPY:

GL traders.  If you decide to trade this market next week - keep your stops fairly tight and don't get greedy (take those 1-2% gains).