SPX update: SPX closed at 1416.25 with IBM good earning news. As noted on 1/9/08, markets have traded above the pivotal supports, for SPX 1378.
I commented on different cycles with supporting cycle notations. In summary, markets are in late 8 year cycle and, of course, 4.5 yr cycles as 9yr cycle is a standard fixed cycle. Note that SPX remained in a trading range for 2007. The successful wave {5} target will be 1600-1650. Corresponding DOW near 14500 +/-, Nasdaq 3000 +/- and Qs 60 +/-.
Considering the oversold market with positive divergences, I think that we will likely see a bottom building at this level. And we have seen positive comments on the markets today.
Having said that, it is better to be cautious as markets are still jittery about the financial sector and potential recession even though I think that financial markets were preparing for the jitters since housing market top in mid 2005.
As noted earlier, I think that markets have priced in a lot of bad news going into Q4 earning report, not like Q3 when markets were pricing in good news as price actions have shown up. Therefore, any good news would be helping the markets.
We have PPI and C earning in the morning, markets could be volatile while I hope that markets have priced in a lot of bad news. INTC & LLTC in AH.
Good luck
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Date:1/9/2008 7:55:33 PM
Post #of 5413
SPX closed at 1409.13 after reversing at 1378.07. As noted earlier closing above 1400 is a good sign of reversal with the price formation ending {4} of {5}.
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