I think we have already seen the top for this move up. Today or tomorrow the market will break down hard.
Here is a comparison to the short term top after the July rally:
- July rally and top (note the 2 days of consolidation after the final move up):
- September rally (the same market behavior):
I have also drawn the future path according to the analogy.
There is also a similarity in the behavior of the put/call ratio (circled in red):
I believe at this moment that the correction will take the spx to the 1090 level. I will fine tune on the way down.
5 comments:
Thanks for update. But I think FED has POMO days today and next week. Market hard to break down if Fed hold...Unless, they allow it..IMHO
Tony
yes Tony. there's also the FOMC next week. if the market does not sell off today or tomorrow, i think it will do so only after the Fed announcement on Tuesday.
Looking for 3:30PM ramp job, If there is NO ramp job, then your plan is going to work!
Tony
Adi,
The globex high tonight is 1130.25
so far, I am under the water since closing.
Heard a lot rumors about the coming FED's QEII next week, may be it already started ? :)
tough market, cc02!
we will see on Tuesday what's on their minds. I think the mere expectation of QE 2.0 may keep prices rising until then.
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