Sunday, May 17, 2009

SPX cycles update

It was clear right after the previous post that the higher projection was not going to be met when the indices and the MCO broke down early last week. The MCO is currently making a zig-zag in the -100 zone which is oversold enough for a bounce but it could drop a bit further into the -150 zone.

This is not guaranteed and the cycles are still pointing out a bit towards May 21st for a CIT date. Since it is not likely to be a high, then it should be a low, and the indices could stall here or even go a bit lower before resuming the up trend.

Because the SUM Index approached the 5000 level the bullish trend should continue for several more months.

SPX 65 minute chart with cycles
Click to enlarge

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