Monday, March 5, 2012

MCO Update 3/5/12

We have been in a correction for the last two weeks. There should be a 13 day cycle low early this week with the completion of the correction in about 13 days after that. The most reliable cycle I see is the 39 day which acts out as either 4 - 10 day wiggles or 3 - 13 day wiggles. The MCO is oversold but not oversold enough to be "oversold"

We might see the MCO get down to the -200 zone, or not since everyone is either looking for a correction or a dip to buy. Many stocks have already dropped off their short term highs, and this is being masked by the index favorites (AAPL, IBM).

All in all this is a remarkably well behaved correction. The Climactic Volume Indicator, hasn't moved out of the 'normal' range for over a month, no spikes, indicating no froth or panic.

Still bullish, buy the dips.

The $SPX, MCO and SUM index
Click to enlarge

$SPX showing the 13TD cycle
Click to enlarge

No comments: