Comments and outlook for 07-29-2011

Today's outlook was too pessimistic.  Still we closed down as the 34TD cycle dominance again overcame a rally attempt.  The 34TD cycle continues down for 2 more days (if I have it positioned correctly).

So we have the 20 week cycle still down and the 65-70 day cycle up (topping soon).  The 34TD cycle is down (bottoming soon).  The 22TD cycle is up (topping soon).  The 11.2TD cycle is down (bottoming soon). With all these cycles topping/bottoming we should see increased volatility over the next few days.

The 5.6TD cycle is down.  The 2.8TD cycle is up.    Overall I expect the downside bias to continue Friday.  Will we test the 1280 level?  Based on cycles it is possible, but probably not.  Of course if the news is negative on the debt ceiling  Kabuki theater anything is possible.

Here is the SPX:

GL traders.  Do your own analysis.  Get your long list ready, we should bottom early next week.